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On June 2, 2021, we filed an answer to Webasto’s second amended complaint filed in May 2021.
−Removed: As to the Webasto lawsuit, our evaluation remains that many of the allegations are meritless, but the discovery phase of litigation continues and we lack sufficient information to fully analyze other allegations at this time.
+Added: In order to avoid the future cost, expense, and distraction of continued litigation, we engaged in settlement negotiations with Webasto and on December 2, 2021 reached an agreement in principle subject to formal documentation with Webasto to settle all claims in the lawsuit for $20 million and allowing Webasto to keep the holdback amount.
+Added: We are currently negotiating a mutually agreeable written settlement agreement, under which we will not admit to any fault or wrongdoing, to settle all claims officially.
+Added: We hope to execute the settlement agreement during our third quarter of fiscal year 2022.
+Added: Should we not be able to negotiate and sign a mutually acceptable settlement agreement with Webasto, we will continue with discovery in the case and defend ourselves vigorously.
As of the date of this filing, trial is set for July 11, 2022.
−Removed: At present written discovery and depositions continue in earnest.
−Removed: We expect nationwide court closures and restrictions resulting from the global COVID-19 pandemic to continue easing, but we expect the possibility of another trial continuance to account for pandemic-related delays (especially related to Europe where many relevant witnesses reside) and therefore trial could be pushed into 2023.
−Removed: In order to avoid the future cost, expense, and distraction of continued litigation, we engaged in settlement negotiations with Webasto.
−Removed: The negotiations did not result in a settlement of any of our or Webasto’s claims;
−Removed: however, we were required to establish reserve related to this litigation as a result of our good faith offer to settle the claims.
−Removed: The offer and resulting reserve do not reflect our view of the merits of the claims made in the litigation, and we continue to vigorously defend all claims.
−Removed: On August 14, 2019, Benchmark, the company that assembled the products subject to the recall, served a demand for arbitration to AeroVironment and Webasto pursuant to its contracts with AeroVironment and Webasto, respectively.
−Removed: In December 2019, Benchmark dismissed, without prejudice, all claims against us in the demand for arbitration.
−Removed: The recall remains a significant part of our pending litigation with Webasto.
−Removed: In January 2021, Webasto also filed a lawsuit against Area 51, the subcontracted supplier of the part that allegedly led to the recall.
−Removed: That case proceeded briefly in Orange County Superior Court, but recently settled out of court.
−Removed: Any recovery that Webasto may have obtained from Area 51 will likely be an offset to any recovery Webasto might obtain from us in our lawsuit.
+Added: We expect nationwide court closures and restrictions resulting from the global COVID-19 pandemic to continue easing, but we expect the possibility of another trial continuance to account for pandemic-related delays (especially related to Europe where many relevant witnesses reside) and therefore trial could be pushed into 2023 should the parties not be successful in negotiating a mutually agreement written settlement agreement.
On August 9, 2021, a former employee filed a class action complaint against AeroVironment in California Superior Court in Los Angeles, California alleging various claims pursuant to the California Labor Code related to wages, meal breaks, overtime and other recordkeeping matters.
The complaint seeks a jury trial and payment of various alleged unpaid wages, penalties, interest and attorneys’ fees in unspecified amounts.
−Removed: As of the date of this filing, we have not been served with the complaint.
+Added: We must file our answer to the complaint the litigation on or before December 16, 2021.
We are subject to lawsuits, government investigations, audits and other legal proceedings from time to time in the ordinary course of our business.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.