17 September 2010
Balmain Trilogy confirms that it has reached an out of court settlement with Gore and other companies. After 18 months of defending various claims, some of which sought more than $300m in damages, the actions will now be discontinued saving the Fund several million in legal costs. Balmain Trilogy believes that the out of court settlement is in the best interest of unitholders.
Settlement of these litigation actions does not in any way affect the ability of Trilogy and Balmain Trilogy to bring actions against parties that have contributed to the significant losses of the Fund.
Recent public commentary that the settlement has wiped away or will result in a further loss to the Fund of $190m is wrong. There will be no change to the value of the Fund as a result of the settlement other than a slight increase in value because of the removal of a contingency for legal fees to defend certain proceedings that have now been discontinued.
Balmain Trilogy’s lawyers will now seek to formalise the discontinuance of the actions against the Fund with the trustees in bankruptcy for Messrs Gore and Atkinson and, once that is done, all substantive litigation involving Messrs Atkinson and Gore, and the Atkinson Gore companies, will come to an end.