On June 17, 2019, a civil jury in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, USA rendered a double-digit-million (U.S.) dollar verdict against GEA Mechanical Equipment US, Inc. The plaintiff, who was a former service technician from a third-party company alleged he was exposed to asbestos from products sold by Centrico Inc., which is part of today’s GEA since 1999.
The company is highly sympathetic to the health issues of the plaintiff, however it remains steadfast that the products it sold did not cause him any harm, as argued to the Court and the jury. The judgement is subject to post-trial proceedings and appeal and therefore neither final nor enforceable. GEA will pursue its rights before Florida’s appellate courts.
Based on comparable litigation proceedings at other companies, GEA and its legal advisors expect that the judgement can either be set aside or at least the amount awarded be reduced substantially in a higher court. Higher court proceedings are expected to lead to a legally binding judgement within about two years.
GEA Group’s EBITDA guidance remains unchanged.