Sphere 3D Announces Favorable Ruling and Dismissal of Lawsuit
October 11 2017 - 8:30AM
Sphere 3D Corp. (NASDAQ:ANY), today announced that the Commercial
Division of the Supreme Court of the State of New York has granted
to its wholly-owned subsidiary, Overland Storage, summary judgment
on all claims brought against Overland by Special Situations Fund
III QP, L.P., Special Situations Private Equity Fund, L.P., Special
Situations Technology Fund, L.P., and Special Situations Technology
Fund II, L.P. (collectively, the “Special Situations Funds”) under
a December 2010 litigation funding agreement.
In December 2010, Special Situations Funds invested in a patent
litigation brought by Overland through an agreement containing a
change-of-control provision under which the Special Situations
Funds would receive a $6 million payout if Overland undertook a
transaction falling within the provision before the patent
litigation was resolved. In January 2014, Overland acquired
Tandberg Data Holdings S.À.R.L. In May 2014, the Special
Situations Funds sued Overland in the Commercial Division of the
Supreme Court of the State of New York, claiming that they were
entitled to a payout because Overland’s acquisition of Tandberg
allegedly fell within the change-of-control provision.
Overland subsequently settled the patent litigation in a manner
that triggered no payment to the Special Situations Funds.
The Special Situations Funds then amended their complaint to claim
alternatively that Overland had breached the implied covenant of
good faith by settling the patent litigation in a manner designed
to avoid a payment obligation to them.
After the close of discovery, the parties filed cross-motions
for summary judgment. On October 10, 2017, the Court entered
an order granting Overland’s motion for summary judgment and
dismissing the Special Situations Funds’ complaint in its entirety
with prejudice.
Overland is represented in the litigation by Abby F. Rudzin and
David J Beddingfield of O’Melveny & Myers LLP. The case
is captioned Special Situations Fund III QP, LP, et al. v Overland
Storage, Inc., Index No. 651557/2014 (N.Y. Sup. Ct. N.Y.
Cnty.).
About Sphere 3D
Sphere 3D Corp. (NASDAQ:ANY) delivers
containerization, virtualization, and data management solutions via
hybrid cloud, cloud and on-premise implementations through its
global reseller network and professional services
organization. Sphere 3D, along with its wholly owned
subsidiaries Overland Storage and Tandberg Data, has a
strong portfolio of brands, including Overland-Tandberg, HVE
ConneXions and UCX ConneXions, dedicated to helping
customers achieve their IT goals. For more information,
visit www.sphere3d.com. Follow us on Twitter @Sphere3D,
@HVEconneXions and @ovltb.
Safe Harbor Statement
This press release contains forward-looking statements that
involve risks, uncertainties, and assumptions that are difficult to
predict. Actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of risks and uncertainties including,
without limitation, our inability to comply with the covenants in
our credit facilities or to obtain additional debt or equity
financing; any increase in our future cash needs; the Company’s
ability to maintain listing with the NASDAQ Global Market;
unforeseen changes in the course of Sphere 3D’s business or the
business of its wholly-owned subsidiaries, including, without
limitation, Overland Storage and Tandberg Data; market adoption and
performance of our products; the level of success of our
collaborations and business partnerships; possible actions by
customers, partners, suppliers, competitors or regulatory
authorities; and other risks detailed from time to time in Sphere
3D’s periodic reports contained in our Annual Information Form and
other filings with Canadian securities regulators (www.sedar.com)
and in prior periodic reports filed with the United States
Securities and Exchange Commission (www.sec.gov). Sphere 3D
undertakes no obligation to update any of the statements in this
press release, including any forward-looking statement, whether
written or oral, that may be made from time to time, whether as a
result of new information, future developments or otherwise, except
as required by law.
Media Contact Tina Brown 408-283-4731
media.relations@sphere3d.com
Investor Contact:The Blueshirt
GroupLauren SloaneTel: +1
415-217-2632lauren@blueshirtgroup.com
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