Inspired Technologies Inc. has settled its two-year lawsuit against Intertape Polymer Group Inc., with Intertape agreeing to pay Inspired $950,000.
“While Intertape does not believe its actions were a breach of the agreements between both parties, after carefully considering the costs of continued litigation and the inherent uncertainty in this type of action, management concluded that a settlement was in the best interest of the company, its shareholders and employees,” Intertape President and CEO Gregory Yull said in a May 19 news release.
The two companies in 2008 signed a two-year deal under which Intertape of Bradenton was to supply rolls of paper painter's masking tape to Le Sueur, Minn.-based Inspired. Inspired would then add Paintblock, a proprietary cross-linked, sodium-based, super-absorbent polymer that prevents latex paint bleed, and then sell the tape under its Frog Tape label.
Intertape sued Inspired in February 2009, alleging that Inspired broke the contract by licensing a second tape supplier, Shurtape Technologies LLC of Hickory, N.C.
Inspired countersued, claiming that Intertape provided it with defective tape; proposed a joint venture solely to acquire Intertape's Paintblock polymer so Intertape could develop its competing Bloc-it product; and tried to force Inspired into bankruptcy by ruining its reputation among customers in the home-improvement industry.
A jury in U.S. District Court in Orlando, Fla., in September of last year sided with Inspired.
A second trial at Intertape's request resulted in a jury award in February of about $13.2 million in damages to Inspired; that amount later was twice reduced.