Ad-hoc: Arbitration process with unexpected negative result
Regarding the pending legal dispute between Carl Zeiss Meditec Inc., a subsidiary of Carl Zeiss Meditec AG (ISIN DE0005313704), and Notal Vision Inc., which has already been published, an US American arbitrator has decided in favor of Notal Vision Inc. Subject of the claim was an alleged breach of a minimum purchase commitment which had been part of a distribution agreement. Carl Zeiss Meditec AG was informed today about the rulings of the arbitration court. The arbitration court admitted Notal Vision Inc.’s claim for payment of lost profit due to the non-fulfillment of the minimum purchase agreement as well as the compensation for legal and other expenses incurred. However, some of details have not yet been clarified yet. According to the principles of prudence, Carl Zeiss Meditec has made provisions in previous periods. However, based on today’s knowledge, these provisions do not seem to be sufficient to offset the payments which clearly exceed the expected amount. Therefore, a maximum negative one-time effect of EUR 2 million after taxes is expected in the current quarter. It should be noted that some issues remain still unclarified. One of these issues is the question if the claims as made by Notal Vision Inc. can be offset against a loan of EUR 1.6 million which was granted to Notal Vision Inc. This could result in a reduction of the above mentioned one-time effect.
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