Watchstone reaches settlement agreement with Slater & Gordon
StockMarketWire.com - Technology company Watchstone said it had agreed to a settlement of claims made by Slater & Gordon, sending its shares surging.
The settlement provided for £11m of the £50m currently held in escrow to be released to Slater & Gordon, Watchstone said.
The balance of £39m and accrued interest would be released to Watchstone and no application for costs would be made by either party.
The settlement was made without admission of liability by either party, Watchstone said.
'We are pleased with the resolution of this matter,' chairman Richard Rose said.
'Whilst Watchstone remains firmly of the view that the legal action commenced by the other side was without merit, the board believes that a settlement at this level is in shareholders' interests as it brings certainty.'
'It also releases a significant cash sum that has been locked in escrow and unavailable to us for some considerable time.'
'The decision was made with consideration of the costs of pursuing the company's defence and counterclaim at trial and to the inherent uncertainty of the outcome of any legal process.'
At 9:13am: (LON:WTG) Watchstone Group Plc share price was +42.25p at 149.25p
Story provided by StockMarketWire.com