Lowrance Electronics lawsuit could head back to Tulsa County

Journal Record, The (Oklahoma City), Mar 6, 2006 by Kirby Lee Davis

Attorneys for Troy Siebels are keeping their options open.

In a joint filing updated Thursday, attorneys sought an extension of U.S. District Judge Terence Kern's order to establish a starting point in Siebel's shareholder lawsuit against Lowrance Electronics, challenging its merger with Simrad Yachting.

That deal's extended tender offer was to expire at midnight Friday. Horten, Norway-based Simrad had already bought 80 percent of the company's stock and hoped to reach 90 percent or more to ease the acquisition process.

In seeking an extension, Siebels' attorneys sought either an order staying the action and suspending the deadline to file an answer, or to remand the action back to the Tulsa County District Court pending settlement negotiations, documents and discovery.

Kern's Tuesday order for a joint status report established a schedule of initial disclosure within 14 days, with up to 120 days for determining future action. That same day, Lowrance announced an agreement in principal with the shareholder from Medford, Mass., having addressed many of his complaints in U.S. Securities and Exchange Commission filings on Feb. 23.

Attorneys for Siebels had originally filed his lawsuit in Tulsa County court Feb. 2, only to see the defendants move it to Kern's Tulsa federal court due to its jurisdiction over securities issues. While last week's filing admitted the plaintiff attorneys were engaged in serious settlement negotiations, it also pointed out the plaintiff does not believe that this court has jurisdiction over this matter and intends to respond, in part, to the counterclaim by seeking a remand of this action.

Siebels claimed Lowrance failed to obtain the best possible price for the company in its $215 million Simrad agreement. The lawsuit also challenged the role of JPMorgan in the negotiations and said a $7.5 million termination fee was illegal.

In announcing the settlement agreement Tuesday, Lowrance said it, Simrad, Navico and their advisors would be released from all claims. Lowrance agreed to additional SEC disclosures addressing the complaints and to not oppose a $325,000 fee application by Siebels' attorneys - the firms Federman and Sherwood of Oklahoma City and Schiffrin and Barroway of Radnor, Penn.