THE TORO COMPANY ANNOUNCES DETAILS OF LAWSUIT SETTLEMENT WITH OUTBOARD MARINE CORPORATION STEMMING FROM PURCHASE OF LAWN-BOY, INC.
BLOOMINGTON, Minn., Jan. 6 /PRNewswire/ -- The Toro Company (NYSE: TTC) today announced details of its lawsuit settlement with Outboard Marine Corporation (NYSE: OM) regarding Toro's purchase of Lawn-Boy, Inc. from Outboard Marine in November 1989. As disclosed in November 1993, Outboard Marine agreed to a payment of $1.85 million to settle the lawsuit. In the suit, Toro claimed that Outboard Marine failed to disclose an unreasonably high incidence of defective gas tanks on one of Lawn-Boy's product lines during the due diligence process. "Outboard Marine corrected the problem shortly before we completed the Lawn-Boy acquisition with an improved design and manufacturing process," said Toro's Senior Attorney Jim Seifert. Lawn-Boy continued to honor a relatively high rate of warranty claims after being acquired by Toro, said Seifert. "The settlement covers fully those warranties and all accrued warranties, plus costs incurred in the lawsuit," he said. The company said this will have no impact on future earnings. The Toro Company is the leading provider of lawn and turf care products for residential, golf and commercial markets. To receive the Toro Company's latest news release and other corporate documents, free of charge via fax, simply dial 800-PRO-INFO. Use company code 154. -0- 01/06/94 /CONTACT: Jim Seifert, senior attorney of the Toro Company, 612-887-8938; or Fred Nachman or Bill Murphy, 312-266-7800; or Todd Friedman, 212-661-8030, all of the Financial Relations Board, for Toro/ (TTC OM)
CO: The Toro Company; Outboard Marine Corporation ST: Minnesota IN: HOU SU:
CP-DB -- MN004 -- 9737 01/06/94 11:49 EST
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|Date:||Jan 6, 1994|
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