General Electric Company (GE) Amends Complaint in Dispute with Orbotech (ORBK)
6/29/2009 10:19:30 AM
YAVNE, Israel--(BUSINESS WIRE)--ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced that on June 18, 2009, GE Healthcare, which describes itself as a unit of General Electric Company, amended its complaint against Orbotech Ltd. (the “Company”), originally filed on November 4, 2008, in the United States District Court for the Eastern District of Wisconsin. The amended complaint expands the U.S. litigation to include certain of the breach of contract claims at issue in the dispute requested to be referred to arbitration in Israel and requests compensatory, consequential, exemplary and punitive damages in an unspecified amount. The dispute relates, among other things, to a claim for damages related to an assertion that Orbotech Medical Solutions Ltd. (“OMS”) was obligated to supply GE Medical Systems Israel Ltd. (“GEMSI”) with CZT modules at a specific price per module pursuant to the terms of an agreement between the Company and GEMSI from December 2004 (such agreement was assigned to OMS and expired in December 2007) and a claim that OMS had an obligation to supply GEMSI with 850 CZT modules by specific dates. The Company continues to believe it has good arguments to dismiss the amended complaint as well as good arguments on the merits should the court determine it will hear the case and intends to defend the matter vigorously. For more information about this matter and the related arbitration matter in Israel, see the Company’s Annual Report on Form 20-F for the year ended December 31, 2008, filed with the United States Securities and Exchange Commission.