Emcore gets Favourable Ruling from Sumitomo Arbitration
Emcore, a provider of InP optical chips, components, subsystems and systems, has received a favourable ruling from the International Court of Arbitration tribunal relating to its ongoing dispute with Sumitomo Electric Industries (SEI).
In September 2014, SEI filed for arbitration against the Emcore in connection with disputes arising out of the company's sale of assets to SEI in May 2012. SEI was seeking $47.5 million from Emcore relating to numerous claims.
On April 12, 2016, a three member arbitration panel rejected SEI's claims. The panel ruled that Emcore owes SEI none of the amounts SEI sought in the arbitration and that the company is entitled to collect the $1.9 million it is holding in escrow.
The company is also entitled to recover over $2.5 million in fees and costs. At December 31, 2015, Emcore had accrued for $3.4 million of liabilities relating to potential claims, in addition to the $1.9 million it held in escrow for these claims.
