Keycorp (ASX:KYC) has announced that proceedings filed against it by HID Global have been resolved by mutual agreement by both parties.
The secure electronic transactions solutions provider received an Application and Statement of Claim, filed in the Federal Court of Australia against Keycorp and two of its directors in June, for alleged misleading and deceptive conduct arising from the applicant’s attempt to secure Keycorp’s former smartcards business.
The terms of the settlement are confidential, according to an ASX statement from Keycorp.
“The company is pleased to report the expeditious resolution of the dispute less than one year since its commencement and that its resolution will have no material impact on current earnings guidance,” the company said.
In a speech at Keycorp’s 2009 annual general meeting, chief executive officer, Joe Bonin, said that the company was transforming its business away from its product development to a business built around product distribution, software expertise and service delivery.
“The prior approach of a product-centric business, either smartcards or product design and development, has been discontinued,” Bonin said.
“Despite the sometimes ‘higher’ revenues that this business brought, the combination of commodity style low margins plus high R&D resulted in these business lines generating a poor level of return, which our prior results are testament to.”
Requests for comment from Keycorp were not immediately returned.