WESCO hit with $36 million judgment

WESCO International said this week it will record the effects of a $36 million legal judgment in its financial results for the fourth quarter ended Dec. 31, 2012.

The judgment is the result of a lawsuit brought against the company through its wholly-owned subsidiary, WESCO Distribution, in an Indiana state court. WESCO Distribution is one of the largest electrical/MRO distributors in the country.

ArcelorMittal Indiana Harbor Inc. alleged that WESCO sold defective products to AIH in 2004 that were supplied to the company by others.

The lawsuit sought monetary damages in the amount of about $50 million.

On Feb. 14, 2013, the jury returned a verdict in favor of AIH and awarded damages in the amount of about $36 million.

WESCO, according to a statement filed with the Securities and Exchange Commission, disputes the outcome and intends to appeal the judgment on the verdict.

WESCO also said it had submitted the claims to its insurance carriers. “The verdict does not affect the company’s ability to execute its strategic plan and initiatives,” WESCO said in the statement.

Tagged with

Comment on the story

Your email address will not be published. Required fields are marked *