CPI Card Group Reaches Settlement in Patent Litigation
September 29 2017 - 3:11PM
Business Wire
CPI Card Group (Nasdaq: PMTS, TSX: PMTS), a global leader
in financial and EMV® chip card production and related services,
today announced that it has reached a settlement with Gemalto S.A
to resolve the two patent litigation suits pending in the U.S.
District Court for the District of Colorado.
Under the terms of the settlement, CPI Card Group has agreed to
make a one-time payment of $750,000 in the fourth quarter of 2017.
The settlement will result in the dismissal of both lawsuits with
prejudice. The settlement agreement also includes a mutual covenant
not to sue for a period of 18 months.
CPI Card Group has denied any wrongdoing in this matter,
but is settling to avoid the uncertainty, distraction, and expense
of protracted litigation.
“While we were firmly committed to our defense of the claims
raised in the suits, we are pleased to end these frivolous suits
for a fraction of our legal expenses,” said Steve Montross,
President and CEO of CPI Card Group. “We have always maintained
that we do not infringe on intellectual property rights of others,
and this settlement for an amount less than reserved legal expenses
shows the strength of our position. We believe this settlement will
allow us to now focus all our efforts on providing high quality
products and execution to our customers.”
About CPI Card Group
CPI Card Group is a leading provider in payment card
production and related services, offering a single source for
credit, debit and prepaid debit cards including EMV chip,
personalization, instant issuance, fulfillment and mobile payment
services. With more than 20 years of experience in the payments
market and as a trusted partner to financial institutions, CPI’s
solid reputation of product consistency, quality and outstanding
customer service supports our position as a leader in the market.
Serving our customers from ten locations throughout the United
States, Canada and the United Kingdom, we have the
largest network of high security facilities in North America,
each of which is certified by one or more of the payment brands:
Visa, MasterCard, American Express, Discover and Interac
in Canada. Learn more at www.cpicardgroup.com.
EMV is a registered trademark or trademark of EMVCo
LLC in the United States and other countries.
Forward-Looking Statements
Statements in this press release that are not statements of
historical fact are “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These
forward looking statements may be identified by terms such as
statements about our plans, objectives, expectations, assumptions
or future events. Words such as “may,” “will,” “should,” “could,”
“expect,” “anticipate,” “believe,” “estimate,” “intend,”
“continue”, “project”, “plan”, “foresee”, and other similar
expressions are intended to identify forward-looking statements,
which are generally not historical in nature. These statements
involve risks and uncertainties that could cause actual results to
differ materially from those described in such statements. These
risks and uncertainties include, but are not limited to: system
security risks, data protection breaches and
cyber-attacks; market acceptance of developing technologies
that make our existing technology solutions and products less
relevant; a slower or less widespread continued adoption of
contact and dual-interface EMV technology than we
anticipate; failure to identify, attract and retain new
customers or a failure to maintain our relationships with our major
customers; competition and/or price erosion in the payment card
industry; failure to accurately predict demand for our products and
services; extension of card expiration cycles; our failure to
operate our business in accordance with the PCI security standards
or other industry standards such as Payment Card Brand
certification standards; infringement on our intellectual property
rights, or claims that our technology is infringing on third-party
intellectual property; difficulties in production quality and
process; defects in our software; a decline in U.S. and global
market and economic conditions; our substantial indebtedness;
failure to meet our customers’ demands in a timely manner;
potential imposition of tariffs and/or trade restrictions on goods
imported into the United States; economic conditions and
regulatory changes leading up to and following the United Kingdom’s
likely exit from the European Union; costs relating to product
defects; our dependence on licensing arrangements; inability
to renew leases for our facilities; interruptions in our IT
systems or production capabilities; the restrictive terms of
our credit facility and covenants of future agreements governing
indebtedness; non-compliance with, and changes in, laws in
foreign jurisdictions in which we operate and sell our
products; challenges related to our acquisition
strategy; our dependence on specialized equipment from third
party suppliers; a competitive disadvantage resulting from chip
operating systems developed by our competitors; continued viability
of the Payment Card Brands; quarterly variation in our operating
results; and other risks and other risk factors or uncertainties
identified from time to time in our filings with the SEC.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct.
Reference is made to a more complete discussion of forward-looking
statements and applicable risks contained under the captions
“Cautionary Statement Regarding Forward-Looking Information” and
“Risk Factors” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2016 filed with
the SEC on March 2, 2017. CPI Card Group
Inc. undertakes no obligation to update or revise any of its
forward-looking statements, whether as a result of new information,
future events or otherwise.
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ICR Inc. for CPI Card GroupInvestor Relations:William Maina,
(877) 369-9016InvestorRelations@cpicardgroup.comorMedia
Relations:Laura Anderson, 203-682-8267media@cpicardgroup.com