Keycorp settles smart card legal wrangle
Electronic transaction provider Keycorp today said that it had settled a court challenge by HID Global Corporation, which had bid for its smart card business.
"Keycorp Limited today confirms that the proceedings filed in the Federal Court of Australia on 9 June 2009 by HID Global Corporation, claiming damages against Keycorp and two of its directors relating to its bid for the company's smart-cards business has been resolved by mutual agreement between the parties," Keycorp said in a statement to the share market today. "The terms of the settlement are strictly confidential," it said.
In August 2008, Keycorp said it would sell its smart card business to an unnamed company for AU$25.3 million. It was later revealed that Gemalto had purchased the smart cards business for AU$25.7 million, according to a media statement from the winning company.
The resolution, Keycorp said, would "have no material impact on current earnings guidance".
According to the Federal Court website, the next directions hearing had been due 26 March. Several directions hearings had been heard on the matter before the mutual outcome had been agreed to.
Both Keycorp and HID Global Corporation had been contacted, but had not yet provided comment at the time of publication.