CANTON, Mass., May 13, 2014 /PRNewswire/ -- LoJack Corporation (NASDAQ: LOJN) today announced that an arbitration panel has dismissed all claims filed against the Company by Tracker do Brasil LTDA (Tracker), the exclusive licensee of the LoJack Stolen Vehicle Recovery technology in Brazil. In its binding decision, arbitrators from the International Centre for Dispute Resolution of the American Arbitration Association also upheld several of LoJack's counterclaims against Tracker for violating the terms of its license agreement, breaching the implied duty of good faith and fair dealing, and engaging in unfair competition. The panel now will conduct a further hearing to determine the amount of an award of damages owed to LoJack.
"This decision is a significant legal victory for LoJack and its shareholders," said Randy Ortiz, LoJack's Chief Executive Officer and President. "The ruling demonstrates that Tracker's claims against the Company were without merit, and allows us to pursue damages against the licensee for the substantial economic harm caused by its breach of contract and unlawful use of our intellectual property and confidential information in the marketplace. Equally important, the decision affirms that the Company acted legally, fairly and in good faith in its dealings at issue with the licensee."
"The management team has worked diligently during the past two years to eliminate the expense and uncertainty of continued litigation," Ortiz said. "With the liability phase of this case now behind us, we look forward to fully concentrating our resources on pursuing strategic business opportunities, including our new telematics solutions, and achieving our long-term performance objectives."
The arbitration case stemmed from a contractual dispute between the parties that began in March 2011. In its 81-page decision, the arbitration panel dismissed all eight of Tracker's claims, including those for intentional misrepresentation, negligent misrepresentation and breach of contract. Tracker had sought $55 million in actual damages, which could have been tripled by the arbitration panel, plus legal fees.LoJack's counterclaims for breach of contract and breach of implied duty of good faith and fair dealing were upheld in part. The panel ruled that Tracker has been making unauthorized use of LoJack's trademarks, copyrights, technology and other confidential information to advertise, lease, sell or market non-LoJack products, representing them to the public as LoJack products.
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