Item 8.01 Other Events
On May 17, 2022, CalAmp Corp. (the "Company") entered into a Settlement
Agreement (the "Settlement Agreement") by and among the Company and Omega
Patents, LLC ("Omega") to settle all claims and counterclaims related to a
patent infringement lawsuit filed by Omega against the Company in December 2013
(the "Lawsuit"). Pursuant to the Settlement Agreement, the Company agreed to pay
Omega $4.9 million in cash and the parties have agreed to dismiss the Lawsuit,
with prejudice. In addition, Omega agreed to release the Company from certain
claims, including those arising out of the Lawsuit.
The Company previously recorded charges aggregating $3.0 million associated with
the Lawsuit as of and through February 28, 2022. Such amount was reflected in
other current liabilities in the consolidated balance sheet that was included in
the Company's Annual Report on Form 10-K for the period ended February 28, 2022.
The Settlement Agreement was unanimously approved by the Company's Board of
Directors.
The Settlement Agreement does not constitute an admission of liability,
culpability, negligence, or wrongdoing on the part of the Company or Omega. The
Company believes the settlement is in the best interests of the Company and its
shareholders. The settlement reflects the Company's desire to forgo further
litigation uncertainty, risk, expense, and potential damages, and to eliminate
further distraction from business focus associated with continuing lengthy and
complex litigation and possible appeals.
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