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News Archive - Wyle Laboratories Settles Litigation with Prior Owners of Liberty Electronics


Wyle Laboratories Buys its Own Stock to Settle Long-Standing Litigation
Oxnard Press Courier (California), June 21, 1966

Article explaining a recent stock transaction by Wyle Laboratories to buy 38,500 shares of its own fully-owned stock in its Liberty Electronics subsidiary to bring a close to a long-standing (since fall-1962) litigation brought by the Wyle Laboratories concerning labor practices at Liberty Electronics Corp. Liberty Electronics Corp. was a successful electronics supply and parts distributor that was acquired in January, 1962 by Wyle Laboratories through purchase of 100% of Liberty Electronics shares, which amounted to 36,500 shares purchased at an unknown value.

Not long after the transaction was completed, Wyle Laboratories learned that Liberty Electronics Corp. had outstanding litigation relating to allaged violation of labor laws, and by its acquisition of Liberty Electronics, Wyle Laboratories became a party in the litigation. Upon learning of this situation, Wyle Laboratories requested the court to re-evaluate the situation. After about four years of wrangling in the courts, Wyle Laboratories, while ruled by the court to be not at fault concerning the violation of labor laws, agreed to purchase 36,000 shares of its own common stock, with the proceeds of the purchase going to former and current employees and principals of Liberty Electronics Corp. who were victims of Liberty's illegal labor practices. Wyle Laboratories was also ordered by the court to re-hire seventeen employees who had been found to have been discrimated against by Liberty Electronics. These seventeen employees were to be hired into equivalent positions, seniority, and pay, and were also to receive full back-pay as of September 22, 1961.