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Jury Fines La-Z-Boy $5.8 Million
    March 23,2016



FORT LAUDERDALE, Fla. — A U.S. District Court jury has awarded $5.8 million in damages to a company that accused La-Z-Boy of failing to pay royalties on power reclining mechanisms used in some of its products.

Following a 14-day trial, jurors found that La-Z-Boy should have paid royalties to Florida-based Medgal Associates for using its mechanism in certain reclining chairs and motion furniture sold since 2012.

The lawsuit, originally filed in November 2014, stemmed from a dispute over a contract the two companies signed in 2002.

La-Z-Boy noted that the judgment has not been entered by the court and said it “strongly believes that it fully complied with all contractual requirements.” The court isn’t expected to enter a judgment until after La-Z-Boy completes presentation of its affirmative defenses, the company said.

However, if the court enters a judgment based on the jury’s verdict, La-Z-Boy said it would incur a pre-tax charge of about 7 cents per share for the fiscal year ending April 30 in connection with the litigation.

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