Shareholders of Digitran Systems have won a roughly $13 million victory over the truck and crane simulator manufacturer and its former president, but it is not yet known how much they actually will be able to collect.
A U.S. District Court jury on Thursday sided with shareholders Gregory McEwen and Larry Parker, who in 1993 led a class-action lawsuit against the company and its president at the time, Donald Gallant.The company, based in Logan, plans to ask the verdict against the company be set aside.
McEwen had accused company executives of securities fraud and misstating revenues. The suit says the company's 1992 sales of $6.6 million included $1.4 million in sales of simulators not yet manufactured, delivered or paid for.
Rick Knuth, one of the attorneys who represented shareholders, said it was unclear how much shareholders will be able to collect from the company.
"We'll be talking with management about that," he said. "The company remains in business and is selling simulators. We hope to be able to reach an accommodation with them."
The jury found Digitran Systems Inc., the company's operating arm Digitran Inc. and Gallant to be liable for the damages.
Digitran's current top executive, Loretta Trevers, formerly Loretta Gallant, was cleared of any wrongdoing, as were other executives and the company's accounting firm at the time.
Everyone who has stayed with the company and worked to keep it afloat these past three years was exonerated, Trevers said.
She said the jury's verdict reconfirms the company's action in 1994 when it discharged Donald Gallant for acting beyond the scope of his duties.
"We intend to file a motion to set aside the verdict against the company in light of the jury findings that Donald Gallant was primarily responsible," Trevers said.