Manchester-based Lydall Inc. revised its Q4 2007 net income to $2.4 million from $2.9 million as a result of expenses from ongoing litigation. Click here to read more.
In July 2003, Lydall sued a former employee, alleging improper use of confidential company information. In November 2004, the Connecticut Superior Court sustained the company’s claims and awarded Lydall punitive damages and reimbursement of attorney’s fees, but in May 2006 the former employee appealed the decision and was heard before the Connecticut Superior Court.
In April, the court overturned certain rulings and upheld others. In the same month, the former employee filed a separate action in the Delaware Chancery Court seeking legal fees and expenses incurred on his behalf of $1.9 million, plus interest. Lydall advanced $800,000 to the former employee’s attorney and expensed $1 million related to the matter.
Action is pending before the Delaware Chancery Court. Resolution of the matter is expected to occur within the next year.Â
