NEW YORK, NY--(Marketwired - Apr 24, 2014) - Loral Space & Communications Inc. (NASDAQ: LORL) today announced that the jury in the trial of the lawsuit with ViaSat, Inc. (ViaSat) returned a verdict against Loral's former subsidiary, Space Systems/Loral, LLC (SSL). The jury found that SSL infringed the patents asserted by ViaSat in the case and also that SSL breached certain non-disclosure agreements with ViaSat. Damages of $283 million were awarded against SSL. The jury also found that Loral was not liable for either patent infringement or breach of contract.
"We are extremely disappointed with the verdict," said Michael B. Targoff, Vice Chairman of Loral. "We continue to believe that SSL's conduct was consistent with, and in due regard for, all applicable and valid intellectual property rights of ViaSat and that SSL did not breach any contracts. We believe that SSL has strong grounds for a reversal of the jury verdict, which we believe will ultimately result in vindication of our position. Justice in this case hinged on the complicated history of satellite technology, which was understandably difficult for the jury to completely comprehend. In particular, the damages awarded were not in any way justified by the evidence presented."
Under the terms of the purchase agreement pursuant to which Loral sold SSL to MacDonald, Dettwiler and Associates Ltd. (MDA) in 2012, Loral is obligated to indemnify SSL for damages in the case, after a final non-appealable judgment has been entered. In addition, under the terms of the purchase agreement, following a change of control of Loral, the indemnification liability of Loral for damages in the case is subject to a $200 million cap.
About Loral Space & Communications Inc.
Loral Space & Communications is a satellite communications company. Loral owns 62.8 percent of Telesat Canada, a global operator of telecommunications and direct broadcast satellites used to distribute video entertainment programming, broadband data, and provide access to Internet services and other value-added communications services. For more information, visit Loral's web site at www.loral.com. LORL-G
This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, the words "believes," "expects," "plans," "may," "will," "would," "could," "should," "anticipates," "estimates," "project," "intend" or "outlook" or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. In addition, Loral Space & Communications Inc. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the Securities and Exchange Commission, and press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties which are described as "Risk Factors" and in the "Commitments and Contingencies" note to our financial statements in the current Form 10-K and in Loral's quarterly reports on Form 10-Q. The reader is specifically referred to these documents, as well as the Company's other filings with the Securities and Exchange Commission.
Risks and uncertainties include but are not limited to (1) risks associated with financial factors, including swings in the global financial markets, increases in interest rates and access to capital; (2) risks associated with satellite services, including dependence on large customers, launch delays and failures, in-orbit failures and competition; (3) regulatory risks, such as the effect of industry and government regulations that affect Telesat; (4) litigation risks, including the patent and breach of contract litigation with ViaSat and (5) other risks, including a possible initial public offering at Telesat that could adversely affect the market for our common stock. The foregoing list of important factors is not exclusive. Furthermore, Loral operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond Loral's control.