LoJack Reaches Legal Settlement With Tracker Do Brasil

(RTTNews) - LoJack Corp. (LOJN) announced that LoJack Equipment Ireland Ltd., which manages the company's international licensee relationships, has reached a legal settlement with Tracker do Brasil LTDA. The agreement results in $5 million of total value to LoJack.

Specifically, Tracker will pay LoJack $2 million in cash and will provide $3 million of value in the form of gross margin through product sales. The cash payments will be received evenly over the twelve months ending January 2016.

Of the total value, $4.0 million will be received in 2015 and $1.0 million will be received in the first seven months of 2016. The product sales are a combination of last time purchases by Tracker in Brazil and other purchases by Tracker affiliates with valid license agreements in other territories.

The agreement also terminates all litigation between the parties, although LoJack Ireland's damages claim may be re-instated in the event that Tracker does not comply with the terms of the settlement agreement, and the immediate termination of Tracker as LoJack's exclusive licensee in the country of Brazil.

The arbitration case stemmed from a contractual dispute between Tracker and LoJack Ireland that began in March 2011. The liability phase of arbitration was conducted in March 2013. In May 2014, The International Centre for Dispute Resolution of the American Arbitration Association dismissed all claims filed against LoJack Ireland by Tracker.