The dispute between both parties has finally ended and all the previous injunctions have been eliminated.
Shares of Pioneer Power Solutions, Inc. (PPSI) are pushing higher with a high volume today. The following thrust in PPSI shares occurred during the premarket trading as the stock rose above 70%. The recent surge is based on the settlement of the company with Myers Power Products, Inc.
Shares of Pioneer Power began trading on Friday at $5.01 up from the prior close of $3.55. The stock is continuing to rise with a volume of over 58 million compared to the average volume of 7.5 million.
As we write this at 11:58 A.M. EST, PPSI was trading at $5.41 rising by 52.48%.
Pioneer Power and Myers Power have agreed to come on a single point and finalize a conclusive settlement.
Back in Jan. 2016, the specialty electrical products manufacturer, Myers filed suit against Pioneer Power including Pioneer Custom Electrical Products Corp. (PCEP) and two of PCEP’s employees.
The suit was filed with the Superior Court of the State of California based on the allegations that Pioneer Power kept confidential business secrets of Myers and used the information wrongly.
Myers received two preliminary injunctions: prohibiting Pioneer Power from interfering with a one-time special cash dividend to its shareholders and tracking certain strategic transactions.
Under the new settlement, these injunctions have been terminated. Also, the lawsuit and all the relevant actions are dissolved with prejudice.
It was vulnerable for Pioneer during all these years going through the legal action and was stopping it to follow its business growth. This settlement allows the company to move forward removing litigation roadblocks and focus on its growth progress.
However, during all this time under legal challenges faced by Pioneer Power, they kept on working on their basics and laid the groundwork for the next phase of its evolutionarily products and services.
Pioneer Power is evolving its cleantech space where the company already has existing products that covers majority of the market demand.
With both the parties having settlement on the lawsuit, all restrictions on Pioneer Power are no more. The terms of the agreement were not disclosed, however, it’s good to have a clear way for Pioneer now.
Pioneer Power Solutions, Inc. (PPSI)is examining other resources through which it can enhance its shareholders’ worth, including share buybacks, dividends, and divesting non-core assets. It’s goods for the company to focus on its market value and speed up its value creation efforts.