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3D Systems to Challenge Arbitration Award Over 2011 Business Acquisition

ROCK HILL, S.C., Oct. 26, 2015 (GLOBE NEWSWIRE) -- 3D Systems (DDD) announced today that it has received a decision from a private arbitration dispute arising out of the company's acquisition of Print3D Corporation in 2011 and that it intends to challenge the decision in federal court. 3D Systems disagrees with the single arbitrator's findings and conclusions and believes the arbitrator's decision exceeds his authority and disregards the applicable law.

On August 23, 2013, a former Company employee filed a lawsuit against the Company in the United States District Court for the District of Hawaii, alleging several causes of action related to the acquisition of Print3D Corporation (of which the former employee was a 50% shareholder). The lawsuit alleges that the Company breached a purchase agreement in order to avoid paying the former employee additional monies pursuant to earn out provisions in the agreement. The lawsuit was transferred to the District Court for the Western District of North Carolina, which court compelled arbitration. The arbitration took place in June 2015 and on October 16, 2015, the arbitrator issued an award in favor of the former employee with respect to certain alleged breaches of contract and implied covenants by the Company. The arbitrator found that the Company did not commit fraud or make any negligent misrepresentations to the former employee.

Pursuant to the arbitral award, the...