Charles & Colvard Settles K&G Litigation
July 01, 09
Charles & Colvard, Ltd. announced on Tuesday that it has settled its lawsuit filed last year against Jewelnet Corporation d/b/a K&G Creations. The moissanite manufacturer said the settlement was under acceptable terms that are not material to the company's financial position in order to avoid further litigation expenses and to dispose of the case.
The company did not provide any further details about the settlement. The North Carolina-based company filed a collection claim against K&G Creations in excess of $2.8 million with interest at a rate of 12 percent from July 4, 2008.
In February, Charles & Colvard confirmed that it will move forward with the lawsuit, anticipating it may be necessary to continue the legal process through a court trial.
At the time Charles & Colvard’s board of directors said it believe that the K&G’s counterclaims are without merit, and they intend to “vigorously” defend against them.
In related news, Charles & Colvard announced the appointment of Dr. Charles D. Lein to the company's board of directors. Dr. Lein is the retired president and chief operating officer of Stuller. The company appointed Timothy L. Krist as Charles & Colvard's chief financial officer.