Judge ruled yesterday on KDN's motion for summary dismissal of the lawsuit against the company on the basis of an expiration of the statute of limitations. That was denied because of some issue relating to more than one class of people having standing in the suit. But the judge DID dismiss several of the claims, including a RICO charge that could have left KDN joint and severally liable for the asbestos claims against all 21 defendants.What remains is the charge of fraud, which revolves around whether Kaydon was sold off for an unfair price, leaving Bairnco, the surviving entity, with an inadequate asset base from which to address the asbestos claims. Essentially, it is suggested that Bairnco spun off all its healthy operations so it could declare bankruptcy and not have to pay claims arising from asbestos litigation claims. But the price at which Kaydon was sold appears reasonable and there was a fairness opinion offered by Kidder Peabody validating the transaction price. Either way, KDN has no debt and enough cash on its balance sheet to be able to handle any judgement that should arise.Stock being up suggests that the risk from this lawsuit going forward is not as big an issue as it was previous to the ruling by the judge. My average cost is $29 - I think that's a tremendous price.
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