Very interesting the announcement that the case has been settled.
If my understanding of the claim is correct the facts / allegations were broadly as follows:
Keith and Karl set up a "join venture" company.
The IP of the JV ended up with a company owned by Karl.
That IP ended us within LVT group for which, inter alia, Karl and Peter received (circa 200m) LVT shares.
Keith sought to have damages to compensate the JV company (and ultimately him as a shareholder of that company).
LVT has settled with Keith for circa $8m and Karl/Peter transferred circa 18m LVT shares to Keith.
Call me stupid but doesn't it mean that LVT has paid for the IP twice? Once when it issued shares to Karl/ Peter and a second time when LVT paid Keith $8m to settle the claim? If so, shouldn't the company be looking to recovery the $8m for Karl/Peter (or perhaps cancel $8m of their shares)? There are potentially other issues around breach of directors duties etc.(either by the JV co or LVT) which I have every faith ASIC will be investigating extremely seriously......... to ensure that retail investors are being looked after.
In any event, doesn't the settlement proves that the IP is "good" in that there would't have been a dispute if it wasn't worth anything? And it also confirms that LVT group now owns the IP outright (assuming no third party claims - eg breach of patent etc).
Onwards and upwards.....
Cheers,
BSP
IMHO, DYOR, NFA etc.
LVT Price at posting:
24.0¢ Sentiment: None Disclosure: Not Held
