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In addition to these ordinary course legal proceedings, the Company is involved in the following legal proceedings.
−Removed: On October 7, 2024, the United States District Court for the Northern District of California granted the Company’s motion to compel arbitration in response to a complaint filed by Tesla, Inc.
−Removed: ("Tesla") on June 14, 2024 against the Company in the Northern District of California, Civil Action No.
+Added: On October 7, 2024, the United States District Court for the Northern District of California granted the Company’s motion to compel arbitration in response to a complaint filed by Tesla on June 14, 2024 against the Company in the Northern District of California, Civil Action No.
5:24-cv-03615 (N.D.
Cal.), which alleged trade secret misappropriation under the Defend Trade Secrets Act (the "DTSA") and the California Uniform Trade Secrets Act (the "CUTSA"), breach of contract and unfair business practices.
−Removed: Given the Court’s favorable ruling, the matter filed by Tesla has been effectively stayed pending arbitration, which Tesla has initiated.
−Removed: The Company maintains the claims alleged in the complaint are without merit and continues to vigorously defend itself against the allegations in confidential arbitration.
−Removed: In addition, on February 13, 2025, Tesla filed another additional complaint against the Company in the United States District Court for the Northern District of California alleging, in part, claims related to correction of inventorship, breach of contract, promissory estoppel and quasi-contract/restitution arising from and/or related to various U.S.
+Added: Tesla initiated that arbitration on November 8, 2024.
+Added: On February 13, 2026, the arbitrator entered an interim decision addressing liability on certain of Tesla’s claims, finding Tesla had established liability on only a limited subset of its claims.
+Added: The amount of potential damages, if any, will be determined in future phases of the arbitration.
+Added: The interim decision provided additional clarity regarding the Company’s ongoing dispute with Tesla and clarified the Company’s ownership of and rights in certain dry battery electrode (“DBE”) technology that the Company has been developing over the past two decades.
+Added: The interim decision includes a narrow injunction preventing the Company from using certain parts in DBE machines.
+Added: The Company already has approved replacement parts, and thus the injunction has not materially impeded its operations or sales.
+Added: Tesla has moved to confirm the injunction before the United States District Court for the Northern District of California.
+Added: The Company has opposed Tesla’s petition to confirm the injunction as premature and has in the alternative cross-moved for an order partially vacating the injunction.
+Added: Additional phases of the arbitration remain pending.
+Added: In addition, on February 13, 2025, Tesla filed a separate complaint against the Company in the United States District Court for the Northern District of California alleging, in part, claims related to correction of inventorship, breach of contract, promissory estoppel and quasi-contract/restitution arising from and/or related to various U.S.
patents and provisional patents, including but not limited to U.S.
−Removed: Similar to the prior matter, this case has also recently been compelled to confidential arbitration by the United States District Court for the Northern District of California.
−Removed: The Company maintains the claims are without merit and intends to vigorously defend itself against the allegations if the matter is reinitiated by Tesla in confidential arbitration.
−Removed: The Company is also defending a separate new confidential arbitration demand, initiated by Tesla on September 8, 2025, which alleges claims for breach of express warranty, declaratory relief, and breach of contract.
+Added: Similar to the prior matter, this case has also been compelled to confidential arbitration by the United States District Court for the Northern District of California.
+Added: Tesla filed a confidential arbitration demand on February 10, 2026, which included the above-referenced claims as well as claims for trade secret misappropriation.
+Added: The Company maintains the claims are without merit and intends to vigorously defend itself against the allegations as the confidential arbitration proceeds.
+Added: The Company is also defending an additional separate confidential arbitration demand, initiated by Tesla on September 8, 2025, which alleges claims for breach of express warranty, design defects in manufacturing, declaratory relief, and breach of contract.
The arbitration demand seeks declaratory relief and actual damages, plus interest and costs.
+Added: An estimate of the possible loss or range of loss related to the foregoing matters cannot be made at this time given the continued lack of specificity in the pending proceedings and/or the applicable pleadings.
+Added: In light of the substantial harm caused to the Company by Tesla's actions, the Company is also pursuing counterclaims against Tesla.
On October 1, 2025, Judge Edward Davila, a federal court judge from the United States District Court for the Northern District of California, issued an opinion and order granting Matthews’ petition to confirm a prior confidential arbitration award, and rejected Tesla’s motion to vacate that same arbitration award.
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An estimate of the possible loss or range of loss related to the foregoing matters cannot be made at this time given the continued lack of specificity in the pending proceedings and/or the applicable pleadings.
−Removed: In light of the substantial harm caused to the Company by Tesla's actions, the Company is now pursuing counterclaims against Tesla.
+Added: In light of the substantial harm caused to the Company by Tesla's actions, the Company is also pursuing counterclaims against Tesla.
As of the date of the filing of this Quarterly Report on Form 10-Q, the Company does not expect these matters will have a material adverse effect on Matthews' financial condition, results of operations or cash flows.
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For a discussion of the risks to the Company associated with this matter, see Part I, Item 1A to our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 - "Risk Factors - Intellectual property infringement assertions by third parties, including those of Tesla, could result in significant costs and adversely affect the Company's business, financial condition, operating results and reputation."
+Added: Part II - Other Information, Continued
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.