Suit Involved Marketing Of Whole-Plane Parachutes

Ballistic Recovery Systems says it has reached a settlement that resolves all claims in a breach of contract suit involving Charles F. Parsons and Aerospace Marketing.

The lawsuit, relates to the termination of the sales and marketing contract between the Company and Parsons relating to the GARD-150 and GARD-172 products. Under the terms of the settlement, BRS agreed to pay Parsons $1.9 million over an eight year graduated payout schedule. In July of 2005, a Jury verdict against BRS awarded Parsons $3.4 million in damages. This negotiated settlement brings to an end the business relationship established for Parsons to have the exclusive rights for the BRS-172 product designed for the Cessna aftermarket.

"The settlement terms allow BRS to continue on its growth path in selling aviation safety products while not adversely affecting ongoing operations. It is unfortunate that this matter required legal intervention. This settlement represents an opportunity for BRS to move on and to continue the product development and market penetration that has made us so successful for 25 years. Moreover, we have the capability to pay this settlement over time with minimal impact to operations," said Larry E. Williams, the Chief Executive Officer of BRS. "We are excited to once again direct 100 percent of our focus and effort to providing our customers with truly outstanding aviation safety products backed by personal customer service," Williams said.

FMI: http://brsparachutes.com