Plug Power Inc (PLUG)

[canadajim]

It is a real lawsuit

that has been brought by a company called Soroof from Saudi Arabia, and involving a shell company set up jointly by Plug and an offshoot of GE. A litigation accrual of $2.4M was booked in the last quarter towards a out of court settlement, but Paul Middleton mentioned it in the January 28th business update call as a $3M dollar affair now effecting both Q3 and Q4 results.

A brief explanation is provided in the 10-K filed for Q3 2014, but if one digs a little deeper you will find that this case is now fairly famous because the litigant got a judgment piercing the corporate veil of the shell company and exposing Plug and GE directly to liability. It has gone through several judgments and appeals and in October 2014 Plug reached an understanding with Soroof regarding an out of court settlement, only to then have GE chase Plug for an additional $1M for associated legal costs.

With regard to the shareholder action commenced in 2000 alleging insider trading a $5M settlement was reached and paid out (in 2005, I believe) bringing that action to an end.

There is a little bit more info in a previous post of mine available at

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=111120233