Mylan took Strides to London shortly after POH took Mylan to Singers. And then a deafening silence I'll call Fabian syndrome .….
So did Mylan actually take Strides to arbitration in London sometime after January 6, 2015? And has there really been “deafening silence” (which I assume is meant to sound ominous) ever since?
Strides advised the Indian Stock Exchange on 15 December 2015 that it had received notification of claims from Mylan with respect to “certain provisions contained in the SPAs and in relation to certain regulatory concerns”. In its December 2015 Qtr filing, Strides advised that it had received the notification of claims during that quarter. Hence, Mylan’s claims were notified before POH filed notice of arbitration with Mylan. Also, notification of claims against escrow isn’t the same as filing notice of arbitration, nor does it necessarily mean that the matter will proceed to arbitration.
In a clarification issued to the Indian Exchange on 6 April 2016, and referring to the Economic Times article which Boomer has referred to, Strides stated that there was no arbitration proceeding underway between Mylan and Strides. Both the original Economic Times article and the Strides response to the Exchange were discussed on this forum at the time and since.
Strides notified the Indian Exchange on 3 November 2016 that it had settled all regulatory claims and some general claims with Mylan. Payout from the US$100 million regulatory escrow was finalised and various warranty and indemnity claims were adjusted against the US$100 million General Claims escrow. Potential third party claims and tax claims were said to be still outstanding and Strides stated in following quarterly and annual filings that it believed that sufficient funds remained in the General Claims escrow to satisfy these claims, if required.
In its most recent quarterly filing of 18 May 2018, Strides referred to “pending third party claims that are in arbitration currently”. It referred to the balance available in the General Claims Escrow account and said it didn’t believe that a further outflow of resources was probable.
In view of the nature of the pending third party claims that are in arbitration currently, it is often difficult to predict with accuracy the outcome of such matters. The Company believes that the third party claims have been effectively defended by the company.
Considering the terms of the SPAs, the nature of the pending claims that are in arbitration currently and the balance available in the General Claims Escrow account, the Company believes that any further outflow of resources is not probable.
that Mylan’s claims were made to Strides in the last quarter of 2015, prior to POH filing notice of arbitration against Mylan.
that Strides received a notification of claims against escrow from Mylan and not a notice of arbitration.
that Strides has since referred to the matter in quarterly filings and Annual Reports.
that Strides has acknowledged that third party claims related to its SPA with Mylan proceeded to arbitration and that, as of May 16, 2018, the arbitration was still current and funds still remained available in the General Claims escrow account for payment in the event of any Award against Mylan.
POH Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
(20min delay)