WEST MELBOURNE, Fla.-Relm Wireless Corp. said it has reached an agreement during pretrial discussions to settle a lawsuit filed in 1993 against its predecessor, Adage Inc.
According to the agreement, Relm will pay the plaintiff $120,000 in cash and 6,452 in restricted common stock to settle the matter, which is related to the note of a former affiliate totaling $1.7 million plus $2.6 million in alleged accrued interest. The case was set to go to trial March 22.
“The final resolution of this old claim removes the last distraction from the past, allowing our management and board to give its full attention to the company’s strategic initiatives and increasing shareholder value,” said George N. Benjamin III, chairman of Relm. “While Relm struggled in recent years to re-engineer its operations and develop next-generation digital product technology these claims still lingered and impacted the company’s progress. Now all these matters are resolved, and the company’s recent string of new product introductions, technical approvals and federal contracts opens the way to a bright future without any of the old baggage.”
