September 12, 2012 – “Last week we filed suit in Delaware Chancery Court against Dominion Voting Systems for that company’s breach of a licensing agreement and tortious interference with our business. Dominion’s actions are intended to undermine Smartmatic’s position as the worlds’ leading supplier of automated election systems, and a competitor of Dominion. In addition, and for the same reason, Dominion has intentionally interfered with our ongoing business relations with election officials in Mongolia and Puerto Rico.
In a separate action, we will also be seeking to challenge the sale that resulted in Dominion acquiring the assets of our former US subsidiary, Sequoia Voting Systems, in June 2010. Those assets, which include a number of valuable contracts for the supply and maintenance of Automated Election Systems to US Customers, were acquired for significantly less than their true market worth, in a transaction designed to avoid the payment of deferred consideration due to Smartmatic.
After repeated attempts to reach agreement with Dominion on these matters, we have no choice but to seek relief in court. We are seeking a declaratory judgment against Dominion to require that they comply with the licensing agreement, and we are seeking monetary damages as compensation for the financial expense Smartmatic has incurred as a result of Dominion’s breach, and the lost revenue attributable to their intentional efforts to undermine our business relationships.
We are pursuing this legal resolution in order to protect our financial interests and legal rights. This lawsuit will have no negative impact on our on-going projects anywhere in the world, or on our ability to provide leading-edge solutions to any of our global government customers and prospects.
Smartmatic will continue to develop and deliver market leading technology solutions for government electoral officials who rely on our systems to ensure fair, accurate and impartial elections.”
Contact: Jason Maloni (Levick for Smartmatic)
202-973-1335 (o)
202-834-9677 (m)
