Mayville Engineering Company announced on October 31, 2024, that it has entered into a formal Settlement Agreement to resolve a previously disclosed lawsuit with Peloton Interactive, Inc. Under the terms of the agreement, MEC will receive a gross cash settlement of $25.5 million.
The company and Peloton have agreed to dismiss the lawsuit and exchange mutual releases. This settlement provides a significant cash infusion to MEC.
MEC plans to utilize some of the proceeds from this settlement to pay down debt and a portion for share repurchases. This move strengthens the company's financial position and demonstrates a commitment to capital allocation.
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