KOLON Industries Agrees to Resolve Civil and Criminal Disputes Regarding Aramid Fiber with DuPont2015-05-01
KOLON Industries (KOLON) announced that it has agreed to resolve the civil trade secrets dispute with DuPont on the 1st (Korean time) in the US District Court for the Eastern District of Virginia and the related criminal charges filed by the US Attorney’s Office and the US Department of Justice, Criminal Division.
These settlements allow KOLON to put the legal dispute with DuPont behind it, which has lasted for six years since 2009 over the development of KOLON’s aramid brand Heracron, and to focus its resources on the production and sale of Heracron in the global market.
CEO Park Dong-moon said, “We are glad that the civil and criminal disputes over Heracron are finally settled. The disputes were resolved in a mutually satisfactory manner.”
Pursuant to the settlements, the civil action filed against KOLON by DuPont is resolved, and KOLON is able to continue the production and sale of Heracron products. CEO Park added, “These settlements enable us to freely expand our aramid fiber business and reinforce our global presence.”
Under the agreement of both parties, DuPont will receive a total of USD 275 million as restitution. The criminal case was also resolved through the Plea Agreement. KOLON pled guilty to a single count of conspiracy to convert trade secrets and agreed to pay a fine of USD 85 million. In return, the US Attorney’s Office agreed to dismiss all other charges, including those related to theft of trade secrets and obstruction of justice. KOLON Corporation is also a signatory to the Plea Agreement and is bound by its terms. KOLON is required to pay restitution and the fine in installments over the next five years.