13 April 2016

Arbitration tribunal rejects SEI's claims, awarding legal fees of $2.5m to Emcore

Emcore Corp of Alhambra, CA, USA – which provides indium phosphide (InP)-based optical chips, components, subsystems and systems for the broadband and specialty fiber-optics markets – says that it has received a favorable ruling from the International Court of Arbitration tribunal relating to its ongoing dispute with Tokyo-based Sumitomo Electric Industries Ltd (SEI).

In September 2014, SEI filed for arbitration against Emcore in connection with certain disputes arising from Emcore's sale of its vertical-cavity surface-emitting laser (VCSEL)-based product lines – including VCSEL and photodiode components, parallel-optical transceiver modules, and active optical cables (AOCs) – to SEI in May 2012. SEI was seeking $47.5m from Emcore relating to numerous claims.

On 12 April, a three-member arbitration panel rejected SEI's claims, ruling that Emcore owes none of the amounts that SEI sought in the arbitration and that Emcore is entitled to collect the $1.9m it is holding in escrow. Emcore is also entitled to recover more than $2.5m in fees and costs. As of 31 December 2015, Emcore had accrued for $3.4m of liabilities relating to potential claims, in addition to the $1.9m it held in escrow for these claims.

See related items:

Emcore sells VCSEL-based product lines to Sumitomo Electric for $17m

Tags: Emcore Sumitomo Electric

Visit: www.emcore.com

Visit: http://global-sei.com