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Federal Signal Denies Misleading Statements Made By Neology In Patent Litigation

Stocks in this article: FSS

OAK BROOK, Ill., July 31, 2012 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS), a leader in environmental, safety and transportation solutions, announced today that Neology, Inc., issued a false and misleading press release on July 30, 2012, regarding litigation between the companies.  Federal Signal issues this release to address Neology's false and misleading statements. 


The companies are engaged in patent litigation in the United States District Court in Delaware ( Neology, Inc. v. Federal Signal Corp., et al).  Neology filed a motion for a preliminary injunction in the case, asking the Court to enjoin Federal Signal from making or selling certain products.  On June 18, 2012, Magistrate Judge Thynge recommended that Neology's motion be denied. 

Yesterday Neology issued a press release containing a number of false and misleading statements.  Neology falsely stated that "Federal Signal Admitted that [the] Patents are Valid and Infringed" and "FS also admitted that based on Judge Thynge's claim construction that [the] patents are valid and infringed."  These statements are not true.  Federal Signal did not admit that it infringed any of Neology's patents, or that any of Neology's patents are valid.

Neology also falsely states that "Judge Thynge recommended that Neology's patents be found valid and infringed by FS."  In fact, Judge Thynge only made one substantive "recommendation" in her report: "I recommend that the court DENY Neology's Motion for Preliminary Injunction."  Judge Thynge also found that for one Neology patent, Neology had not demonstrated a likelihood of success on infringement.  For three more of its patents-in-suit, Neology did not even ask the Court for a preliminary injunction.  Judge Thynge did make a finding for purposes of the preliminary injunction motion regarding two Neology patents.  However, that finding does not bind the parties as the case proceeds to trial, and Federal Signal has also expressed its disagreement with that finding.  At trial, Federal Signal believes that it will prevail on the infringement and invalidity issues. 

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