REG - Dialight PLC - Sanmina Litigation

DialightAnnouncement

15/03/2023 07:00

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RNS Number : 9806S  Dialight PLC  15 March 2023

Dialight plc ("Dialight")

Sanmina litigation

As reported by Dialight previously, and most recently in its half-year results
for the period ended 30 June 2022, Dialight has been involved in ongoing
litigation with its former manufacturing partner, Sanmina Corporation
("Sanmina") in relation to the termination of their manufacturing services
agreement.

Both parties issued formal legal proceedings in December 2019 and, following
unsuccessful mediation at the beginning of 2022, Sanmina lodged a motion for
summary judgment to dismiss certain elements of Dialight's claims and
counter-claims.

The Court's ruling on Sanmina's dismissal motion (first filed on 2 May 2022)
was released to the parties under seal on Tuesday 14 March 2023.  The
notification of this ruling is available at https://ecf.nysd.uscourts.gov.  A
final redacted version of the judgment (necessitated by the inclusion in the
judgment of commercially confidential materials) should be published on or
around 11 April 2023.

The court denied Sanmina's motion to dismiss Dialight's fraudulent inducement
claim and denied its motion for summary judgment on Sanmina's accounts
receivable claim.  The court granted Sanmina's motion as to the dismissal of
Dialight's willful misconduct claim.  The fraudulent inducement claim,
together with various claims and counter-claims relating to accounts
receivable and accounts payable, will now proceed to trial, pending any appeal
process.  Following the court's examination of the evidence supporting
Dialight's fraudulent inducement claim against Sanmina, and of other related
matters, Dialight will now rigorously pursue its claims to trial.

If Dialight's claims are successful at trial, the range of outcomes could
include the payment by Sanmina to Dialight of between $0 and c. $220m
(excluding legal costs and judicial interest).  If Sanmina's claim is
successful at trial the range of outcomes could include the payment by
Dialight to Sanmina of between $0m and $8.3m (excluding legal costs and
judicial interest).

Contacts:

Dialight plc

Tel: +44 (0)203 058 3542

Fariyal Khanbabi - Group Chief Executive

Richard Allan - General Counsel & Company Secretary

 

About Dialight:

Dialight (LSE: DIA.L) is a global leader in sustainable LED lighting for
industrial applications. Dialight's LED products are providing the next
generation of lighting solutions that deliver reduced energy consumption and
create a safer working environment. Our products are specifically designed to
provide superior operational performance, reliability and durability, reducing
energy consumption and ongoing maintenance and achieving a rapid return on
investment. The company is headquartered in the UK with operations in
Australia, Dubai, Germany, Malaysia, Mexico, Singapore, the UK and the USA.
www.dialight.com.

 

Notes:

1.  This announcement includes inside information as defined in Article 7 of
the Market Abuse Regulation No. 596/2014 (which forms part of domestic UK law
pursuant to the European Union (Withdrawal) Act 2018) and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations. On the publication of this announcement via a Regulatory
Information Service ("RIS"), this information is considered to be in the
public domain.

2.  The person responsible for making this announcement is Richard Allan,
General Counsel & Company Secretary of Dialight plc

 

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