Forgent Networks Wins Action Against Estate of Former Director
AUSTIN, TX--(MARKET WIRE)--May 10, 2005 -- Forgent Networks (NasdaqNM:FORG) announced today that it won its action in the 261st District Court in Travis County, Texas, against the independent executrix of the Estate of Gordon Matthews. The jury found that the company has no further liability to the Matthews Estate and that Forgent should be awarded its fees. Prior to trial, Forgent had also prevailed on its claim for repayment of certain officer loans.
"We have always been of the firm opinion that the claim from the Matthews estate had no merit and are very pleased that the jury found unanimously in our favor. Despite our belief in the lack of merits with the claim, Forgent took this action very seriously, and we diligently prepared a proactive case," said Richard Snyder, chairman and CEO of Forgent. "We are also extremely pleased with the forceful defense presented by our legal team, the Austin-based law firm of Taylor & Dunham, L.L.P."
"Needless to say, we are happy to have achieved such a great result for our client," said Donald R. Taylor, who led the trial team.
In February 2003, Forgent received a letter from legal counsel for the independent executrix of the Estate of Gordon Matthews, asserting that the company was obligated to pay the independent executrix of the Estate of Gordon Matthews for the asserted value of services claimed to have been rendered by Matthews in connection with his alleged involvement in Forgent's Patent Licensing Program. In February 2003, the company initiated an action in the 261st District Court in Travis County, Texas, styled Forgent Networks, Inc. v. Monika Matthews, et al., for the purposes of declaring that the company has no obligation to the defendant. In that action, the defendant had filed a counter claim asserting that the independent executrix of the Estate of Gordon Matthews was entitled to recover in quantum meruit for the reasonable value of the work and services claimed to have been provided by Gordon Matthews, a former member of the board of directors and consultant to the company, which the defendant asserted was at least $5.0 million. On May 6 the company prevailed. In a unanimous verdict, the jury concluded that there is no further liability due to the independent executrix of the Estate of Gordon Matthews. Forgent was also successful in its claim for payment of prior officer loans and attorney's fees.
About Forgent Forgent Networks (NasdaqNM:FORG - News) develops and licenses intellectual property and provides scheduling software to a wide variety of customers. Forgent's intellectual property licensing program is related to communication technologies developed from a diverse and growing patent portfolio. Forgent's software division, NetSimplicity provides a spectrum of scheduling software that enables all sizes of organizations to streamline the scheduling of people, places and things. For additional information please visit www.forgent.com.
Source: Forgent Networks