NEW YORK, June 30, 2004 (PRIMEZONE) -- JZ Equity Partners PLC ("JZEP"), the mezzanine fund managed by Jordan/Zalaznick Advisers, Inc., won a U.S. Supreme court decision today in an anti-trust case against 3M Corporation on behalf of one of its investee companies. JZEP will receive approximately $25 million in ten business days as part of the overall judgment and accrued interest totaling approximately $87.5 million. In addition, there will be reimbursement for attorney fees in amount to be determined.
The U.S. Supreme Court denied 3M's attempt to appeal from a $68.4 million judgment in favor of JZEP's investee company, LePage's Management Company, LLC. LePage's sued 3M in 1997, alleging that 3M had illegally abused its monopoly power in the market for invisible and transparent tape. Specifically, LePage's claimed that 3M had engaged in exclusionary bundled rebate programs and exclusive dealing arrangements that prevented LePage's from fairly competing in the market. A Philadelphia jury found 3M's programs to be illegal and awarded $68.4 million in damages after trebling.
3M appealed the judgment to the United States Court of Appeals for the Third Circuit in Philadelphia. After a panel of that court determined that the judgment against 3M should be reversed, the full court decided to hear the case. By a vote of 7-3, the full court affirmed the jury's conclusion that 3M's conduct was illegal. The Supreme Court's action today denies 3M's final attempt at an appeal, leaving the Court of Appeal's decision as binding.
JZEP's original investment in 1993 was approximately $8.9 million which was subsequently written off in 1997. JZEP's shares of the proceeds arising from the judgment will be allocated to income and capital, in amounts to be determined.
JZ Equity Partners ("JZEP") is a $500 million investment trust specializing in mezzanine investments. JZEP, managed by Jay Jordan and David Zalaznick, is an affiliate of The Jordan Company LP which manages the $1.5 billion private equity fund, The Resolute Fund LP.
David Zalaznick, Chairman of Jordan/Zalaznick Advisers, Inc., issued the following statement: "On behalf of our shareholders, we are gratified by the final outcome".
Jordan/Zalaznick was represented by Roy Englert at Robbins, Russell, Englert, Orseck and Untereiner in Washington, Mark Ryan at Mayer, Brown, Rowe & Maw in Washington, Barbara Mather at Pepper Hamilton and Peter Hearn in Philadelphia.