TPI ENTERPRISES IN LITIGATION SETTLEMENT WITH SIEMENS INFORMATION SYSTEMS
TPI ENTERPRISES IN LITIGATION SETTLEMENT WITH SIEMENS
NEW YORK, Nov. 11 /PRNewswire/ -- TPI Enterprises, Inc. (NASDAQ: TPIE), and Siemens Information Systems, Inc., announced today that they have settled their 4-1/2 year old litigation. Under the terms of the global settlement agreement, all claims between TPI and Siemens will be dismissed.
The settlement concludes a long standing dispute over the final amount to be paid for Siemens' March 1987 purchase of Tel Plus Communications, Inc. ("Tel Plus"), then TPI's principal operating subsidiary, pursuant to a December 1986 acquisition agreement. At the time, Tel Plus was an independent "interconnect" company, installing and maintaining a wide variety of computerized telephone switching systems, including Siemens communications products, for private and institutional use. The settlement provides that TPI will receive $43,000,000 no later than the close of business in New York on Tuesday, Nov. 12, 1991.
Siemens Information Systems is an indirect, wholly owned subsidiary of Siemens AG, the German electronics and industrial company.
TPI Enterprises, through its restaurants subsidiary, owns and operates 245 full-service, family-style restaurants, including 171 Shoney's restaurants, principally in the southeast United States. Through its 50 percent holding in Exhibition Enterprises, a New York general partnership, TPI Enterprises' entertainment subsidiary holds interests in the operation of 59 motion picture theatre complexes comprising 408 screens.
Commenting on the settlement, Stephen R. Cohen, chairman and chief executive officer of TPI, and Jost Hammerschmidt, president of SIS, stated: "Our settlement brings to a conclusion 4-1/2 years of litigation. It also brings to an end the extraordinary expense and management distraction which were a necessary part of this effort." Cohen added: "I am delighted that TPI can finally again devote its full time and attention to the accomplishment of its primary business objectives."
The settlement agreement concludes litigation commenced by Siemens in the United States District Court for the Southern District of New York on June 3, 1987. In December 1987, Judge Leonard B. Sand ordered arbitration of disputes in accordance with the parties' acquisition agreement and stayed Siemens' lawsuit pending the completion of the arbitration.
After the arbitration was concluded in March 1991, the parties agreed to lift the stay in the federal court litigation. On April 22, 1991, Siemens amended its complaint to seek damages for securities law and RICO violations, fraud and breach of contract. On May 8, 1991, TPI filed counterclaims seeking payment of the adjusted purchase price for the business sold to Siemens and other damages. The settlement provides for a general release of all claims between TPI and Siemens.
/CONTACT: David E. Bamberger, vice president and general counsel of TPI, 212-230-2233; or Earnest Thompson of Siemens, 202-434-4811/ CO: TPI Enterprises, Inc.; Siemens Information Systems, Inc. ST: New York IN: TLS SU: GK-OS -- NY020 -- 2915 11/11/91 09:46 EST