SOURCE: Loral Space & Communications

Loral Space & Communications

September 06, 2014 20:00 ET

Loral and SSL Reach Settlement With ViaSat

SSL Free From Future Lawsuits Relating to Contested Patents; Loral and SSL Receive Full Litigation Releases; Settlement Payment of $100 Million to ViaSat to Be Allocated Between Loral and SSL

NEW YORK, NY--(Marketwired - Sep 6, 2014) - Loral Space & Communications Inc. (NASDAQ: LORL) today announced that Loral, Loral's former subsidiary, Space Systems/Loral, LLC (SSL), and ViaSat, Inc. (ViaSat) have settled the breach of contract and patent infringement lawsuits brought by ViaSat against Loral and SSL in February 2012 and against SSL in September 2013.

Under the terms of the settlement, in consideration of a current payment to ViaSat of $40 million and future payments of $60 million over 2 1/2 years with interest, ViaSat has agreed that SSL and its customers will be free from any lawsuits with respect to SSL's future use of the ten patents-in-suit and certain other patents and patent applications and with respect to breach of certain contracts that were the subject of the suit. The settlement also releases Loral, SSL and their customers from all claims for patent infringement and breach of contract brought in the lawsuits.

The payments to ViaSat will initially be funded equally by Loral and SSL but will be subject to a further allocation between the parties. Loral and SSL have agreed to arbitration in October 2014 to allocate how much of the payment each party bears.

"We are pleased with the settlement with ViaSat as it avoids further exposure to the uncertainties of jury determinations in complex patent matters at a cost to both Loral and SSL that, given the breadth of the settlement, is well within the range of reasonable settlements," said Michael B. Targoff, Vice Chairman of Loral. "We are also satisfied with the arrangements that we have put in place to allocate the payment between Loral and SSL. We believe these arrangements, providing for a knowledgeable, experienced attorney/arbitrator to make the determinations, will result in a fair and equitable sharing of the settlement cost acceptable to both companies."

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 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; 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.