Atomos settles legal case with former CEO

Atomos Limited (ASX:AMS) has announced the settlement of the US and Australian legal cases between the company and its former Chief Executive Officer, Estelle McGechie. The settlement follows a Confidential Settlement Agreement and Mutual Release, with neither party admitting liability. The provision recorded in the FY24 Appendix 4E Preliminary Final Report is stated to be sufficient to meet all payments relating to the Settlement Payment amount and all future legal expenses relating to the matters. Atomos has confirmed its access to sufficient capital to meet the settlement obligations as and when they fall due.

Executive Commentary on Settlement

Atomos Managing Director and CEO, Jeromy Young, expressed satisfaction with the settlement, stating, 'This is a very positive outcome and marks another key milestone in our journey to re-build the business. With these matters now resolved, the clean-up of issues negatively affecting Atomos are now coming to a close, and we are able to focus our time and resources on releasing new and groundbreaking products to existing and new markets as well as ensuring the company continues on its path to financial strength.'

Summary of Settlement and Outlook

Atomos Limited (ASX:AMS) has successfully settled the US and Australian legal cases with its former CEO through a Confidential Settlement Agreement and Mutual Release. The company has affirmed that the provision recorded in the FY24 Appendix 4E Preliminary Final Report is adequate to cover all payments related to the Settlement Payment amount and future legal expenses. Atomos also reassured its access to sufficient capital to meet the settlement obligations as and when they fall due. The Managing Director and CEO, Jeromy Young, highlighted the positive outcome of the settlement, emphasizing the company's ability to now focus on releasing new products and expanding into new markets, while ensuring financial strength. Atomos' resolution of these legal matters marks a significant step in its journey to rebuild the business and indicates a renewed focus on innovation and growth.