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Subsequent Event
9 Months Ended
May 31, 2012
Subsequent Event  
Subsequent Event

 

12. Subsequent Event

 

In June 2012, the Company and Cree executed a settlement agreement that was effective as of June 21, 2012 in respect of Cree’s amended complaint against the Company and the Company’s complaint against Cree, providing for the dismissal of each without prejudice. The Company also agreed to the entry of a permanent injunction effective October 1, 2012 that will preclude it from (and/or from assisting others in) making, using, importing, selling and/or offering to sell in the United States the Company’s accused products and/or any device that includes an accused product after that date and to payment of a settlement fee for past damages. All accused products sold before the date of settlement are released under this agreement and the Company’s customers and distributors are specifically released as well. The Company does not believe the injunction will have a material adverse effect on it since it has current plans to introduce a new line of LED products not subject to the injunction. The settlement agreement acknowledges a transition period between the date of settlement and the effective date of the injunction of October 1, 2012.