Autoliv Asks for Reconsideration.STOCKHOLM, Sweden -- Regulatory News: On July 16, Autoliv (NYSE NYSE See: New York Stock Exchange :ALV ALV Arvonlisävero (Finnish: value added tax) ALV Avian Leukosis Virus ALV Andorra La Vella (capital of Andorra) ALV Autonomous Land Vehicle ALV Asta La Vista ALV Alvin, Texas ALV Air Launched Vehicle ) (STO:ALIV ALIV A Life in Vain (band) ) received notice that the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Federal Circuit Court of Appeals upheld a judgment entered against Autoliv ASP, Inc., a subsidiary of Autoliv Inc. - the worldwide leader in automotive safety systems. The judgment requires Autoliv ASP to pay damages and interest to a former supplier. The aggregate amount could total approximately $36 million depending on the court's calculation of post-judgment interest which has not yet been made. Autoliv maintains that the damage award was based in part on accounting errors by the supplier discovered in the course of the supplier's bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . Autoliv has therefore decided to file with the Federal Circuit Court a motion seeking reconsideration re·con·sid·er v. re·con·sid·ered, re·con·sid·er·ing, re·con·sid·ers v.tr. 1. To consider again, especially with intent to alter or modify a previous decision. 2. of its decision. As a consequence of the Federal Circuit's decision, Autoliv has decided to increase its provisions for legal disputes by $30 million that together with existing provisions should cover the amount fully. As disclosed in Autoliv's Annual Report and filings with the Securities and Exchange Commission (SEC), a former supplier sued Autoliv ASP in 1999. The law suit relates to certain commercial agreements dating back to 1995. In December 2003, the district court awarded the supplier approximately $27 million in damages plus $7 million in pre-judgment interest. In 2004, in connection with the proceedings in the supplier's bankruptcy proceeding, it was revealed that the supplier's account data, upon which the damages were in part based, contained errors and misrepresentations. On that basis, Autoliv appealed the lower court's judgment and the supplier cross-appealed the calculation of the pre-judgment interest. On Monday this week, Autoliv received notice that the Federal Circuit Court of Appeals affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the judgment of the lower court. Given the exceptional circumstances in this case, Autoliv decided to file a motion for reconsideration. The $30 million increase in Autoliv's provisions will be made in to the second quarter this year and will be included in Other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. in the quarterly report that Autoliv will publish on July 26 as announced earlier. The effect on net income, earnings per share and other variables will be further disclosed in the second quarter report next week. This information was brought to you by Cision http://newsroom.cision.com |
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