Apple Sought $1 Billion in Damages vs GT Advanced if Litigation Ensued
According to court documents filed Monday evening, GT Advanced revealed its settlement with Apple was the only feasible option, otherwise the Cupertino company was ready to seek over $1 billion in liquidated damages, reports Reuters:
“The alternative to the settlement agreement would be months, if not years, of costly, time-consuming, and distracting litigation with Apple over a wide range of contested issues, the success of which GTAT could not guarantee,”
“Apple has advised GTAT that it would assert liquidated damages claims for in excess of $1 billion against GTAT,”
GT Advanced was primed as a stock darling based on rumours it was to supply sapphire glass panels to Apple for its iOS devices, but the former failed to meet performance targets.
Two GT Advanced executives sold off stock prior to Apple’s September Media event, leading many to question the company’s motives, as just weeks later it filed for bankruptcy, resulting in over 700 jobs lost. Despite the pre-planned timetable to cash in by selling GTAT stock, the timing is definitely questionable.
These executives are laughing all the way to bank, which also includes all those analysts that pumped the stock up to meteoric levels and managed to cash out in time.