News America Settles With Insignia Systems, Inc. For $125 Million; Parties Enter Into Exclusive 10-Year Business Agreement
Insignia Systems, Inc. (Nasdaq: ISIG) announced today that it has reached an agreement to settle its outstanding lawsuit against News America Marketing In-Store, LLC (“NAM”). The settlement discussions were overseen by Judge John Tunheim and Magistrate Judge Arthur Boylan of the United States District Court, District of Minnesota. Insignia entered into a 10-year exclusive agreement with NAM to sell signs with price. Under the terms of the confidential settlement agreement, NAM will pay Insignia $125 million and Insignia will pay $4 million to NAM in relation to the business agreement.
“I am pleased that we were able to reach a mutually agreeable settlement and avoid protracted litigation,” said Scott Drill, Insignia’s President, Chief Executive Officer and Secretary.
The settlement includes the dismissal with prejudice of Insignia’s lawsuit pending against NAM in the United States District Court, District of Minnesota. For further information regarding this lawsuit, see Insignia’s most recently filed SEC Form 10-Q.
The trial team was led by Julian Solotorovsky of Kelley Drye & Warren LLP and Robert Meller of Best & Flanagan LLP and included William MacLeod, Stephen Wood, Michael Lynch and Alison MacGregor also of Kelley Drye & Warren LLP, and James Diracles, Charles Berquist, Ross Formell and Kate McMahon of Best & Flanagan LLP.Insignia Systems, Inc. is an innovative developer and marketer of in-store advertising products, programs and services to retailers and consumer goods manufacturers. Through its Point-Of-Purchase Services (POPS) business, Insignia is contracted with 9,600 chain retail supermarkets and drug stores. Through the nationwide POPS network, over 200 major consumer goods manufacturers, including General Mills, Kellogg Company, Kraft, Nestlé, Ocean Spray, Reckitt Benckiser, Schwan’s Bakery and Tyson Foods, have taken their brand messages to the point-of-purchase. For additional information, contact (888) 474-7677, or visit the Insignia website at www.insigniasystems.com. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements. The Company’s actual results could differ materially from these forward-looking statements as a result of a number of factors, including risks and uncertainties as described in the Company’s SEC Form 10-K for the year ended December 31, 2009 and other recent filings with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made.
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