Kansas Court of Appeals Rules in Favor of Aeroflex Wichita in Case Against Tel-Instrument Electronics Corp.

Rhea-AI Summary

Viavi Solutions Inc. (VIAVI) (NASDAQ: VIAV) announced that the Court of Appeals of the State of Kansas affirmed a lower court decision in a case filed by Aeroflex Wichita, now a VIAVI company, against Tel-Instrument Electronics Corp. ('TIC') and two of its employees, with total damages owed to VIAVI now exceeding US$7 million. The case involved tortious interference and improper use and disclosure of Aeroflex's confidential business information to win a competitive US Army contract. TIC is obligated to pay the full judgment and accrued interest amount, and VIAVI is pursuing full payment of all amounts owed from TIC as a result of the Court of Appeals' judgment.

Positive

• VIAVI's victory in the court case strengthens its position and affirms its commitment to protecting its proprietary information and business interests.

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• None.

CHANDLER, Ariz., Aug. 8, 2023 /PRNewswire/ -- Viavi Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced that the Court of Appeals of the State of Kansas has affirmed a lower court decision in a case filed by Aeroflex Wichita, now a VIAVI company, against Tel-Instrument Electronics Corp. ("TIC") and two of its employees with total damages owed to VIAVI now exceeding US$7 million. The lower court case, filed by Aeroflex prior to the acquisition by VIAVI and affirmed by the Kansas Court of Appeals, awarded damages caused by tortious interference and improper use and disclosure of Aeroflex's confidential and proprietary business information used to win a competitive US Army contract to upgrade and supply the Army with avionics test sets.

In TIC's press release on July 27, 2023, TIC's President and CEO Jeff O'Hara stated that the appellate court's opinion was a "final decision" which entailed TIC's paying the full judgment and accrued interest amount. TIC also filed an 8-K with the SEC on that same day in which it referred to the appellate decision and "the Company's obligation to pay damages in full." VIAVI takes these statements to mean that TIC will not file a petition for review to the Kansas Supreme Court and that TIC will pay its portion of the judgment, costs, and interest. VIAVI is pursuing full payment of all amounts owed from TIC as a result of the Court of Appeals' judgment.

Aeroflex, now part of the VIAVI AvComm Business Unit, has delivered a broad portfolio of avionics test solutions, including reliable R&D, flight line, factory and return-to-service test solutions to the avionics market for more than 50 years. The company has served aircraft operators, avionics system manufacturers, and maintenance/depot, repair and overhaul service providers in the military, commercial and general aviation sectors.

"We are pleased that the Court found in our favor, and in their words, 'Justice was done,'" said Doug Russell, Senior Vice President, AvComm, VIAVI. "VIAVI and Aeroflex are proud of our history of innovation and support for our armed services. The integrity of the technology development process provides confidence to us and to our customers in the systems underlying our nation's defenses."

About VIAVI
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for communications service providers, hyperscalers, equipment manufacturers, enterprises, government and avionics. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications. Together with our customers and partners we are United in Possibility, finding innovative ways to solve real-world problems. Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn, Twitter, YouTube and Facebook.

Media Inquiries:

North America Sonus PR Martin Smith viavi@sonuspr.com	Europe, Middle East & Africa Sonus PR Chevaan Seresinhe viavi@sonuspr.com	Asia Pacific Voila Communications Manish Sharma manish@voilacomm.in
China Archetype Geff Pan viavichina@archetype.cn

 

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SOURCE VIAVI Solutions

FAQ

What was the court decision in the case involving VIAVI and TIC?

The Court of Appeals of the State of Kansas affirmed a lower court decision awarding damages to VIAVI, now exceeding US$7 million, owed by TIC.

What were the damages awarded to VIAVI?

The damages awarded to VIAVI exceeded US$7 million and were caused by tortious interference and improper use and disclosure of Aeroflex's confidential business information.

What is the obligation of TIC following the court's decision?

TIC is obligated to pay the full judgment and accrued interest amount, and VIAVI is pursuing full payment of all amounts owed from TIC as a result of the Court of Appeals' judgment.

What does VIAVI's pursuit of full payment from TIC indicate?

VIAVI's pursuit of full payment from TIC indicates the company's determination to enforce the court's judgment and recover the damages owed to them.

What is the significance of this court decision for VIAVI?

The court decision strengthens VIAVI's position and affirms its commitment to protecting its proprietary information and business interests.