Press release from Marketwire
Brazilian Lower Court Judgment Issued Against Webtech
Friday, September 20, 2013
Brazilian Lower Court Judgment Issued Against Webtech06:00 EDT Friday, September 20, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 20, 2013) - Webtech Wireless Inc. (TSX:WEW), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, announces a judgment was issued by a lower Brazilian Court in a lawsuit originally brought in 2008 by a former distributor, Crown Telecom ("Crown"). In the decision, the lower court found the Company liable for damages to Crown for what the Court found to be improper interference with Crown`s contractual relations. The amount of the damages has not been determined. Crown has sought damages in the amount of R$108,606,173 (approximately CDN$50 million).
A previous decision of the lower court rendered in 2008 against the Company was overturned by the Minas Gerais State Court of Appeal in July, 2009 and the matter was sent back to the lower court. In the interim Crown entered bankruptcy proceedings and until recently the Company was not aware that the lower court was continuing to consider the case and intending to render judgment.
Prior to the launch of this lawsuit by Crown, the Company had entered into certain agreements with Crown under which Crown granted the Company an irrevocable and complete release from any litigation action by Crown against the Company. The Company defended the contractual interference claim on the merits and on the basis of this release provided by Crown. The lower court decision does not refer to the release the Company received from Crown. The Company is represented in the lawsuit by Brazilian legal counsel and the Company believed and continues to believe that the lawsuit is without merit and will take immediate steps to appeal and set aside the judgment.
About Webtech Wireless ®
Webtech Wireless (TSX:WEW) is a leader in providing fleet management telematics, GPS and automatic vehicle location (AVL) solutions that improve efficiency, accountability and reduce costs. Our end-to-end solutions automate record keeping and regulatory compliance, reduce fuel burn and idling, mitigate risk, and keep drivers safe. Managers trust us to ensure people are accountable and vehicles are visible. Through the cloud, in the office, or straight to mobile devices, we deliver Fleet Intelligence Anywhere™. Our products are InterFleet ®, for government winter maintenance, public works and waste management fleets; and Quadrant ®, for commercial fleet operations and compliance (HOS, EOBR). Please visit www.webtechwireless.com.
All amounts in Canadian dollars (CAD$) unless otherwise noted. • The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. • Trademarks are the property of their owners
FOR FURTHER INFORMATION PLEASE CONTACT:
Webtech Wireless Inc.
Chief Financial Officer
Press and Media
Webtech Wireless Inc.
Vice President Marketing