Courtesy of Benzinga.
Pendrell Corporation (NASDAQ: PCO) announced Friday that the Court of Appeal of the State of California, Second District, has overturned the 2008 California Superior Court jury verdict in the litigation between Pendrell’s subsidiary, ICO Global Communications Limited, and The Boeing Company (NYSE: BA) and certain of its subsidiaries. The Court also awarded Boeing its appellate costs.
ICO was awarded $603 million in October, 2008 by a jury following a lengthy trial in California Superior Court. The jury had found that one of Boeing’s subsidiaries had committed fraud and breach of contract, and that Boeing had tortiously interfered with ICO’s contractual rights in connection with a $2 billion construction and launch agreement for a worldwide satellite communications network. Judgment on the $603 million verdict was later entered and affirmed by the Superior Court with post-judgment interest of ten percent. Boeing appealed the verdict in early 2009. The proceedings before the California Court of Appeal were significantly delayed, most recently by the highly unusual recusal of two appellate justices without explanation.
“We are clearly disappointed with the court’s decision and we are evaluating our options for further review,” commented Ben Wolff, chief executive officer of Pendrell.
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