DahPong Science Reaches Settlement with U.S. Allied World, Business and Finance Unaffected

Network communication company DahPong Science (7689-TW) announced today (23) that it has successfully reached a settlement in the Allied World lawsuit case pending in the U.S. District Court for the Eastern District of Pennsylvania. DahPong stated that the overall settlement terms have no significant adverse impact on the company's finances and business.

DahPong Science stated that this settlement is a decision made by the company based on overall business considerations and does not represent the company's admission of any claims or liabilities of the other party in the lawsuit. The overall settlement terms have no significant adverse impact on the company's finances and business. Regarding the Wielgopolski lawsuit pending in the Philadelphia County Court of Pennsylvania, the mediation procedure is currently underway, and the company will disclose the results in accordance with regulations once the results are determined.

The cross-border lawsuit originated from DahPong Science receiving a notice from a U.S. court in March 2014, as a contract manufacturer for Medical Guardian Company, being included as an additional and cross-claim defendant in a product liability case for personal emergency response equipment. The plaintiff proposed six causes of action in the complaint, and the initial amount of the lawsuit was estimated to be approximately $300,000 based on the local court's acceptance threshold. Subsequently, the insurance company filed a declaratory judgment lawsuit with the federal district court on February 18, 2015.

According to the expert witness opinion commissioned by DahPong Science, it was determined that the products manufactured by the company had no defects and that product liability should not be attributed to DahPong Science. The company previously evaluated the progress of the lawsuit, expert opinions, and the distribution of responsibilities, and expected that the case would not have a significant impact on its financial situation and business operations. With the formal termination of the federal court lawsuit, the related operational uncertainty has been further reduced.