XPEL Drops Lawsuit

XPEL Technologies Corp. recently announced the signing of a settlement agreement with American Filter Film Distributors (AFF) in Euless, Texas, and other defendants, regarding legal action initiated by the Company in March of 2008. The paint protection films and cutting software provider previously filed a complaint against AFF, Film and Vinyl Designs LLC, now located in Fort Worth, Texas (previously in Euless), Brett Wassell, in his individual capacity, and Larry Wassell, also in his individual capacity, alleging that the companies and individuals used modifications of its kit designs in a manner that violates the end user license agreement. (See related article on page 12 of WINDOW FILM's July-August 2008 issue.) In addition to refraining from future acts, XPEL was requesting that the defendants be required to pay damages, along with prejudgment interest and post-judgment interest. XPEL's chief executive officer, Nuno Ferreira, released a statement stating that "The various legal actions brought against the defendants have been settled in a manner acceptable to the company." Ferreira failed to comment further on the settlement by press time. Brett Wassell, defendant, says the companies agreed to refrain from further disclosure of the details.

"Our settlement is basically a signed, non-disclosure settlement. I can't elaborate on that," Wassell says, adding, "I think everybody's happy with the outcome of the settlement." Wassell's company continues to operate as a software and hardware provider.

Though the actions have been settled, they did not come without financial consequences for XPEL. In its third quarter results, published December 2, 2008, the company partly blames the suit for increases to its general and administrative expenses. The company's expenses increased 39 percent to $971,907 from $701,290 in the third quarter of 2007 and 58 percent to $3,698,037 from $2,336,545 in the first nine months of 2007. Acquisitions completed in the latter half of 2007 are also cited as cause for increase. In August 2008, XPEL announced that it had dropped its latest acquisition effort by reaching a mutual agreement with Performance Tools Distributing. The two will continue a working relationship, but Performance Tools will no longer be coming under the XPEL umbrella as previously planned. CLICK HERE for related story.