Business News

MULTI-COLOR SETTLES LEGAL DISPUTE

Wednesday 06. April 2011 - On April 5, 2011, Multi-Color Corporation (MCC) and four MCC employees who were formerly employed by the John Henry Company, as defendants, entered into a Confidential Settlement Agreement and Mutual General Release with the John Henry Company and Multi Packaging Solutions, as plaintiffs.

The settlement relates to the complaint for damages and injunctive relief filed by plaintiffs in the Superior Court for Napa County, California on February 26, 2010. The complaint included allegations of improper taking and use of certain confidential and proprietary information by the employee defendants, which were denied by MCC and the employee defendants.
The Agreement provides that upon MCC’s payment of $2.8 million to the John Henry Company, plaintiffs will file a request for dismissal of the complaint and a mutual release of all claims and potential claims arising out of the complaint will become effective and the related injunction will be deemed dissolved. The after-tax impact of this charge to MCC’s fourth quarter earnings will be approximately $1.75 million.