Court ruling in insurance dispute related to US distribution center
As continuously described in our financial reporting, Nilfisk’s insurer filed a lawsuit in Denmark on October 15, 2022 against Nilfisk with respect to the insurance payout for the destruction of the Group’s US distribution center following a tornado.
The Court of first instance ruled in favor of Nilfisk. The insurer subsequently appealed the ruling, and Nilfisk has today received the ruling from the Eastern High Court, which finds in favor of the insurer.
Nilfisk disagrees with the ruling, and based on external legal advice, will apply for leave to appeal the decision to the Supreme Court.
The insurer’s total claim was reduced from 19 mEUR to 17 mEUR excluding interest and legal fees, corresponding to a total exposure of approximately 23 mEUR including interest and legal fees.
Nilfisk CFO, Carl Bandhold says,
“We are disappointed with the outcome of the Eastern High Court’s ruling, which is contrary to our understanding of the facts of the case and our expectations. Based on external legal advice, we will seek leave to appeal the decision to the Supreme Court.”
As previously communicated, the dispute is considered special items and will not affect Nilfisk’s operating results.
For further information, please contact:
Nynne Jespersen Lee, Head of Investor Relations and Group Communications
+45 42 31 00 07
njespersen@nilfisk.com
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