Immediately following the commencement of this review Mike Colaco, former owner of INET Airport Systems, resigned his management position in Cavotec INET and as a member of the executive management committee of Cavotec.
"This is an ongoing investigation and therefore commenting is limited," said Cavotec director for investor relations and PR Michael Scheepers. "However, we’ve decided to be as transparent as we can and inform the financial market."
Colaco has filed a lawsuit against Cavotec seeking damages of approximately USD 2M and supplementary remedies. "Cavotec denies any such wrongdoing and will defend against all claims", the company stated. "We will file a counterclaim, and we will discuss this further as things progress," said Scheepers.
In addition to Colaco’s resignation two other members of the local Cavotec INET team resigned, with immediate effect, from their respective positions. The company has reported that no other personnel departures have occurred relating to the impending legal proceedings.
Since mid-September a new management team has been in place at Cavotec INET focusing on improving customer service and driving growth in the US market and elsewhere.
