Expolanka settles litigation against US subsidiary with USD6.75mn payment

Sep 24, 2019 (LBO) – Expolanka’s US-based fully owned subsidiary, Expolanka USA LLC, at a mediation held in New Jersey has resolved to conclude a dispute with RCS Logistics Inc with a payment of 6.75 million US dollars without the acceptance of liability.

The company said in a stock exchange filing that the payment is to be made on or about the 18 October 2019.

RCS Logistics Inc filed an action against Expolanka USA LLC, Expolanka Holdings PLC, and others claiming damages on account of several of its employees leaving the employment of RCS Logistics Inc and joining Expolanka USA.

According to the annual report, no provision has been recognized in the financial statements for the period ended 31 Mar 2019 in connection with this case.

Quote from the annual report:

The management is not in a position, at this stage of the judicial proceedings, to give a reliable estimate of a potential judgment, if any, that may be rendered even in the event the outcome of these proceedings goes against Expolanka USA LLC, Expolanka Holdings PLC and/or the other defendants.