Husqvarna settles engine-capacity lawsuit in the US

Husqvarna and a number of other parties have reached a settlement in a lawsuit in a Federal District Court in Illinois, USA, regarding alleged inaccurate specification of engine capacity in lawn mowers. The lawsuit, which has been pending since 2004, will thus be withdrawn. The other parties are manufacturers or sellers of lawn mowers or engines for lawn mowers. The settlement includes more than 65 similar or parallel lawsuits in all 50 states in the US. Husqvarna’s settlement cost amounts to approximately SEK 100m (USD 13.7m), of which SEK 50m (USD 7m) was not previously expensed and will be charged against operating income for the first quarter of 2010. Husqvarna agreed to the settlement in order to avoid a prolonged and expensive legal process in which the results are uncertain. The Group continues to deny that there is any justification for the claims against the company. The settlement is subject to court approval in the US.