ID Systems appeals reversal of antitrust verdict

SSN Staff  - 
Thursday, April 3, 2003

April 3, 2003

TORONTO - ID Systems this week filed court documents to appeal a post-trial ruling that vacates an earlier antitrust verdict and reversed the majority of $80 million in damages to be paid to ID Systems by Checkpoint Systems.

The appeal was filed in the Third Circuit Court of Appeals after a post-trial ruling last week in the U.S. District Court for the Eastern District of Pennsylvania reduced the award to $13 million and cleared the antitrust verdict. The judge upheld a verdict on charges of violating state law on tortuous interference and unfair competition.

In its original lawsuit, ID Systems, based here, claimed that Thorofare, N.J.-based Checkpoint violated antitrust laws and Pennsylvania state law by interfering with ID Systems’ contract to distribute radio frequency anti-shop lifting tags made by Tokai Electronics of Japan. ID Systems also claimed that Checkpoint delayed the introduction of a product called Laserfuse.

In May of 2002, a jury awarded ID Systems $80 million in treble damages and for attorney fees.

Officials at Checkpoint said the company is now reviewing its rights to appeal the remaining damages under the tortuous interference and unfair competition claims.