The Board of Directors of Cavotec SA has initiated an investigation, which is currently underway, focusing on certain practices of two individuals at Cavotec's US-based INET operations.
Immediately following the commencement of this review Mike Colaco, former owner of INET Airport Systems Inc, resigned his management position in Cavotec INET and as a member of the Executive Management Committee of Cavotec SA. Additional to Colaco's resignation two other members of the local Cavotec INET team resigned with immediate effect from their respective positions.
Subsequently, Colaco filed a lawsuit against Cavotec seeking damages of approximately USD 2 million and supplementary remedies. Cavotec denies any such wrongdoing and will defend against all claims and will file a counterclaim against Colaco. Cavotec believes that the lawsuit will have no material impact on its results.
As previously announced a new management team is in place at Cavotec INET focusing on improving customer service and driving growth in the US market and elsewhere. Cavotec is happy to report that initial response in the market has been positive.
Cavotec is a leading global engineering group, developing innovative technologies that enable the maritime, airports, mining and tunnelling, and general industry sectors to operate productively and sustainably.