This excerpt taken from the PWER 8-K filed Jan 5, 2007.
Hitachi G.E. Lighting (Hitachi) has filed a claim in Italy against PEG in the amount of $1.5 million alleging defective product sold by PEG to Hitachi between July 1999 and January 2002. Hitachi presented evidence of damages to the court and PEG has challenged the adequacy of the evidence. The court has yet to issue a decision regarding the claim.
MBM Italia has filed a civil action in Italy against PEG in the amount of Euro 1.5 million (approximately $1.9 million) alleging the use of unlicensed software that PEG purchased from a third party. Magnetek has asked for a dismissal of the action and a request for indemnification from the third party vendor. MBM asked the court to issue an injunction against PEG prohibiting PEGs use of the software which the court has rejected. A trial was held in December, 2005 and the court has yet to issue a decision.
PEG is aggressively defending these matters and management does not believe the ultimate outcome, individually or collectively, will have a material adverse effect on PEGs financial position or results of operations.