PLYMOUTH, MI -- Perceptron will pay 3CEMS $10 million over the next year to settle breach of contract claims.

Perceptron, a provider of 3D automated metrology equipment, agreed to settle the civil suit filed by 3CEMS in January 2015 in return for dismissal and release of all claims.

Perceptron will take a pretax charge of $1 million in its fiscal fourth quarter of 2017. As part of the agreed settlement, Perceptron is denying any guilt in the matter.

3CEMS, the world's 30th largest EMS company according to the CIRCUITS ASSEMBLY Top 50, alleged Perceptron breached its contractual obligations by failing to pay for component parts to be used to manufacture optical video scopes for the company’s discontinued Commercial Products Business Unit. 3CEMS alleged that it purchased the component parts in advance on the understanding the lines would be supported.

“We believe this settlement is in the best interest of Perceptron and its shareholders,” said David Watza, President and CEO. “While we were firmly committed to our defense of the claims raised in the suit, we want to eliminate the uncertainty associated with the ongoing litigation and agreed to settle in order to avoid substantial legal expenses. As a result of these negotiations, the amount of the settlement is substantially lower than the plaintiff’s claimed amount.”

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