Pioneer Power Solutions (NASDAQ:PPSI) news for Friday about it reaching a settlement in a court case has PPSI stock on the rise.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Pioneer Power Solutions has reached a settlement with Myers Power Products. The details of the settlement were not revealed.
What we do know is that Myers Power Products has dropped all of its accusations against Pioneer Power Solutions. That includes its claims that the company used confidential business information from it. It alleged this information came from two of its previous employees that joined PPSI.
The lawsuit against Pioneer Power Solutions was tying up its business. Injunctions in the filing were keeping the company from paying out a special cash dividend to investors. It also wasn’t letting the company move forward with strategic transactions. With the settlement, all of these injunctions have been dismissed.
Nathan Mazurek, CEO of Pioneer Power Solutions, had this to say about the news.
“Putting this situation behind us removes certain roadblocks and impediments to Pioneer’s growth ambitions. Nevertheless, even while navigating this legal challenge, management has been laying the groundwork for the next phase of Pioneer’s evolution, specifically focused on the cleantech space where Pioneer already has existing products and services that address this market. Concurrently, we are evaluating other avenues to increase shareholder value, including dividends, share buybacks and divesting non-core assets. We are glad to put this matter behind us and intend to accelerate value creation efforts.”
Investors were reacting positively to the news today and shares of PPSI stock are trading heavily. As of this writing, more than 49 million shares have traded. That’s a hefty spike compared to the stock’s daily average trading volume of 7.56 million shares.
PPSI stock was up 48.5% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.