GLASSBRIDGE ENTERPRISES, INC. (NYSE:GLA) Files An 8-K Other EventsItem 8.01 Other Events.
On February 17, 2017, following a trial, the jury in a patent infringement case brought by IOENGINE, LLC (the “Plaintiff”) against GlassBridge Enterprises, Inc. (the “Company,” “we” or “us”) in the United States District Court for the District of Delaware returned a verdict against us. In December 2014, the Plaintiff filed a lawsuit against us alleging infringement of United States Patent No. 8,539,047 (the “Patent”) by certain products we formerly sold under the IronKey brand. The jury determined that we had infringed the alleged claims, that the patent claims asserted against us were not invalid, and that no individual other than the founder of the Plaintiff made a significant contribution to the idea covered by the claims of the Patent. However, the jury determined that there was insufficient evidence to support the Plaintiff’s allegation of willful infringement. The jury awarded the Plaintiff $11.0 million in damages.
We strongly disagree with the jury verdict and certain rulings made before trial. We intend to vigorously challenge the verdict and certain of the Court’s pre-trial rulings in post-trial motions, and, if necessary, pursue our rights on appeal. Additionally, prior to trial, the Court ruled that our inequitable conduct defense would be heard in a separate bench trial to proceed after the jury trial, if necessary. We intend to proceed with the inequitable conduct defense bench trial.
As we sold the IronKey business in February 2016, we do not expect the verdict to impact our ability to conduct our business or to have any impact on future revenues.
Forward-Looking Statements
This Current Report on Form 8-K includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to our ability to successfully prevail in post-trial motions, on appeal or in an inequitable conduct defense bench trial, the impact of the jury verdict on our business and future revenues, and the impact of any final judgment on our financial results. Words such as “expects,” “believes,” “anticipates,” “intends,” “estimates,” “seeks” and variations and similar words and expressions are intended to identify such forward-looking statements. Forward-looking statements are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Such forward-looking statements are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These factors include, but are not limited to, any adverse outcomes of any motions, appeals or an inequitable conduct defense bench trial and such other risks and uncertainties indicated from time to time in filings with the U.S. Securities and Exchange Commission by the Company. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
About GLASSBRIDGE ENTERPRISES, INC. (NYSE:GLA)
GlassBridge Enterprises, Inc., formerly Imation Corp., is a holding company. The Company is a data storage and data security company. It operates through Nexsan segment. The Nexsan segment operates as its own product line. Its storage systems portfolio ranges from storage products to unified hybrid storage solutions for small and medium commercial businesses, enterprise and government customers. It consists of Imation Nexsan and Connected Data products. Its Nexsan portfolio features solid-state optimized unified hybrid storage systems, secure automated archive solutions and high-density enterprise storage arrays. Nexsan systems are delivered through a network of cloud service providers, value-added resellers (VARs) and solutions integrators. It offers global customers four main solution sets: the NST hybrid storage line, the Nexsan E-Series disk arrays, the Assureon line and the Transporter line. Its subsidiaries include GlassBridge Asset Management, LLC and Nexsan Corporation. GLASSBRIDGE ENTERPRISES, INC. (NYSE:GLA) Recent Trading Information
GLASSBRIDGE ENTERPRISES, INC. (NYSE:GLA) closed its last trading session down -0.31 at 7.19 with 16,216 shares trading hands.