| News & Know How | News
Cybex Puts Product Liability
Lawsuit Behind It Company’s stock hits 52-week high following news of agreement
Holmes Place feels “homier” now
Holmes Place Repurchases Namesake Clubs
olmes Place International has announced that it’s completed the acquisition of 29 Holmes Place Clubs in Spain and Portugal. “Holmes Place Iberia has been separated from the International Group since 2005, and this reunification is the fulfillment of our long- held desire to see the brand reunited under one ownership structure,” explains Doron Dickman, the CEO of Holmes Place Europe. “We’re all very excited about the challenges and opportunities that lie ahead.” With this development, the company now has 79 clubs across 10 countries, which serve approximately 250,000 members. —|
H > Short Takes | Exorcise Cravings with Exercise
Are those chocolates and other snacks that show up at work hard to resist? As most white-collar workers know, too much noshing on high-calorie foods—especially in high-stress environments—can quickly add pounds. However, according to one study, from the University of Exeter in the U.K., just getting out of the office and taking a 15-minute walk can help people resist temptation. The research, published in the journal Appetite, showed that, after a short burst of physical activity, workers ate half as much chocolate, com- pared with workers who didn’t exercise. —|
> Cybex International, Inc. (NASDAQ: CYBI), the Medway, Massachusetts–based equipment manufacturer that, for years, has been oper- ating beneath the cloud of a major product liability lawsuit, reached an agreement in February with the plaintiff, Natalie M. Barnhard.
It significantly reduced the amount of the damages awarded initially, and released the company from any further liability with respect to the litigation. With the announcement, the company’s
stock price jumped more than 100% virtually overnight, from $.64 to $1.39, eventually peaking at $1.55. There was also a sharp increase in shares traded, making Cybex one of the NASDAQ stocks recording large volume increases. “Approximately 1,539,300 shares changed hands, a 1,492.1% increase over its 65-day average,”
cbsnews.com reported on February 6. The lawsuit was brought by Barnhard, 31,
a former physical therapy assistant, who became a quadriplegic when a leg-extension machine toppled over on her while she was working at Amherst Orthopedic Physical Therapy, in Buffalo, New York. Cybex denied any responsibility for the accident, but, in December 2010, a jury awarded Barnhard $66.5 million in damages and medical expenses. Last November, an appellate court reduced the amount to $44.5 million. Subsequent negotiations between the parties
led to a final agreement, which stipulates a payment of $19.5 million, $18.5 million of which will be paid upon conclusion of the settlement, expected in March, and $1 million of which will be paid over the following seven years. “As we move past this lawsuit, Cybex
remains a healthy business and a leader in the fitness industry,” observed John Aglialoro, the company’s chairman and CEO. “We are confident of our future as we move forward with our Cybex team.”—|
ihrsa.org | APRIL 2012 | Club Business Internat ional 17
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