DIRTT's Update on Litigation with Falkbuilt, Smed and Loberg

Rhea-AI Summary

DIRTT Environmental Solutions (TSX: DRT; OTC: DRTTF) provided an update on its litigation against Falkbuilt, Smed, and Loberg. On February 5, 2025, the U.S. District Court for the Northern District of Utah dismissed DIRTT's case based on forum non conveniens, determining that Canada is the appropriate venue for the legal proceedings.

The Utah Court found that since DIRTT Environmental Solutions owns the trade secrets in question, and any resulting injury would affect the Canadian company, the claims should be pursued in Canada. The Court of King's Bench of Alberta has scheduled an 8-week trial from February 2 to March 27, 2026, where DIRTT will pursue damages potentially exceeding $50,000,000 for losses suffered in Canada, the United States, and abroad.

Positive

• Potential damages recovery exceeding $50 million if litigation is successful
• Trial date confirmed for February 2026, providing clarity on timeline for resolution

Negative

• Dismissal of U.S. court case requiring litigation to proceed in Canada
• Ongoing legal expenses and management attention required through 2026

CALGARY, Alberta, Feb. 11, 2025 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. ("DIRTT" or the "Company") (TSX: DRT; OTC: DRTTF), a leader in industrialized construction, announced an update on the Company's litigation against Falkbuilt, Smed and Loberg.

On February 5, 2025, the U.S. District Court for the Northern District of Utah granted Falkbuilt's motion to dismiss the case DIRTT brought against it in Utah, on the basis of forum non conveniens. In simple terms, the Utah Court decided that it would not hear DIRTT's claims in Utah because Canada is an adequate alternative forum (i.e., location) and Canadian law applies to most of DIRTT's claims. Further, the Utah Court found that DIRTT's Canadian company, DIRTT Environmental Solutions Ltd., owns the trade secrets that were the subject matter of the Utah claim, so whether the theft of those trades secrets occurred in Canada or abroad, they would result in injury to DIRTT Environmental Solutions Ltd. and could be pursued in Canada. The Utah Court, in essence, redirected the determination of those damages from Utah to Canada, being the appropriate forum for the legal dispute.

Meanwhile, in November 2024, the Court of King's Bench of Alberta, Canada, scheduled the Canadian lawsuit for an 8-week trial commencing February 2, 2026, and running consecutively until March 27, 2026. With the Canadian trial commencing less than a year away, DIRTT is pursuing damages and losses it suffered in Canada, the United States, and abroad in the Court of King's Bench of Alberta. The Canadian Court will determine whether Falkbuilt, Mogens Smed, Barrie Loberg and others wrongfully caused DIRTT to suffer damages, which could exceed $50,000,000. DIRTT is confident in the strength of its case.

ABOUT DIRTT:
DIRTT is a leader in industrialized construction. DIRTT’s system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, healthcare, education, and public sector markets, DIRTT’s system provides total design freedom, and greater certainty in cost, schedule, and outcomes. DIRTT’s interior construction solutions are designed to be highly flexible and adaptable, enabling organizations to easily reconfigure their spaces as their needs evolve. Headquartered in Calgary, AB Canada, DIRTT trades on the Toronto Stock Exchange under the symbol “DRT”.

FOR FURTHER INFORMATION, PLEASE CONTACT
DIRTT Investor Relations at ir@dirtt.com

FAQ

What is the potential damage amount DIRTT (DRTTF) is seeking in its lawsuit against Falkbuilt?

DIRTT is seeking damages that could exceed $50,000,000 for losses suffered in Canada, the United States, and abroad.

When is DIRTT's (DRTTF) trial against Falkbuilt scheduled to begin in Canada?

The trial is scheduled to begin on February 2, 2026, and will run for 8 weeks until March 27, 2026, in the Court of King's Bench of Alberta.

Why was DIRTT's (DRTTF) Utah lawsuit against Falkbuilt dismissed?

The U.S. District Court dismissed the case on February 5, 2025, based on forum non conveniens, determining that Canada is the more appropriate venue as Canadian law applies to most claims.

What are the main claims in DIRTT's (DRTTF) lawsuit against Falkbuilt?

The lawsuit involves claims related to trade secrets owned by DIRTT Environmental Solutions , alleging their theft and resulting damages to the company.