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Headwaters Announces Trial Judgment in Boynton Litigation

^{Published on 2011-04-15 03:20:23 - Market Wire}
 

SOUTH JORDAN, Utah--([ BUSINESS WIRE ])--HEADWATERS INCORPORATED (NYSE: HW), today announced that in the case of Boynton v. Headwaters the Federal District Court for the Western District of Tennessee confirmed the 2009 and 2010 trial results and entered final judgment consistent with the jury verdicts previously disclosed in the amount of $16,011,771. Boynton has been an ongoing litigation since 2000 with both trial court and appellate court proceedings. In June 2009, a jury reached a verdict in the amount of $8,745,000 for eight members of the class of former Adtech, Inc. stockholders. In September 2010, a jury reached a verdict in the amount of $7,266,771 after a trial for the 46 remaining plaintiff members of the class that did not participate in the first trial. Since the second trial, the court has entered orders on an equitable claim of all members of the class, equitable defenses, and other post-verdict issues.

"We anticipate that we will soon be in position to appeal the final judgment."

"The trial judge has confirmed the jury verdicts and substantially eliminated uncertainty related to the final trial judgment," said Don P. Newman, Chief Financial Officer. "We anticipate that we will soon be in position to appeal the final judgment."

Headwaters recorded a $15 million expense as a result of the judgment, which will be reflected in the March 2011 quarter results, bringing the total recorded liability to $16 million. Headwaters expects to file post-judgment motions with the court and is considering an appeal. Additional background information about the Boynton case can be found in Headwatersa™ previous public filings, the most recent of which is the December 31, 2010 Form 10-Q.

About Headwaters Incorporated

Headwaters Incorporateda™s is improving lives through innovative advancements in construction materials through application, design, and purpose. Headwaters is a diversified growth company providing products, technologies and services to the heavy construction materials, light building products, and energy technology industries.Through its coal combustion products, building products, and energy businesses, the Company earns a revenue stream that helps to provide the capital to fund growth of existing and new business opportunities.

Forward Looking Statements.

Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor created thereby.Forward-looking statements include Headwatersa™ expectations as to the managing and marketing of coal combustion products, the production and marketing of building materials and products, the production and marketing of cleaned coal, the licensing of residue hydrocracking technology and catalyst sales to oil refineries, the availability of refined coal tax credits, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters.Such statements that are not purely historical by nature, including those statements regarding Headwatersa™ future business plans, the operation of facilities, the availability of feedstocks, and the marketability of the coal combustion products, building products, cleaned coal, catalysts, and the availability of tax credits, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management.Actual results may vary materially from such expectations.Words such as amay,a ashould,a aintends,a aplans,a aexpects,a aanticipates,a atargets,a agoals,a aprojects,a abelieves,a aseeks,a aestimates,a aforecasts,a or variations of such words and similar expressions, or the negative of such terms, may help identify such forward-looking statements.Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. In addition to matters affecting the coal combustion products, building products, and energy industries or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled aRisk Factorsa in Item 1A in Headwatersa™ Annual Report on Form 10-K for the fiscal year ended September 30, 2010, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses.

Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors.Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason.Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Our internet address is [ www.headwaters.com ]. There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicableafter we electronically file such material with, or furnish it to, the SEC.Our reports can be accessed through the investor relations section of our web site.