Shares in lighting specialist Dialight PLC (LSE:DIA) rose over 9% on Tuesday morning after it reported on progress in the legal battle with former manufacturing partner Sanmina Corporation.
Claims over fraudulent inducement, together with various claims and counter-claims relating to accounts receivable and accounts payable, will now proceed to trial, after a New York court rejected Sanmina’s bid to dismiss Dialight’s claims of fraud, but granted Sanmina's motion to dismiss Dialight's willful misconduct claim.
Dialight said it would “rigorously pursue” its claims at trial, adding that a win in court could see it receive between zero and US$220mln from Sanmina, with defeat seeing it pay no more than US$8.3mln.
The ruling, with a final redacted version expected to be published around 11 April, effectively ended Sanmina’s bid to have large parts of the case dismissed.
Dialight rose 9.5% in early trading, before falling back to 205p, 2% higher than Tuesday’s close.