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American Defense Systems Settles Lawsuit Against Southern California Gold Products dba Gypsy Rack

^{Published on 2009-12-11 10:47:27 - Market Wire}
 

HICKSVILLE, NY--(Marketwire - December 11, 2009) - American Defense Systems, Inc. (ADSI) (NYSE Amex: [ EAG ]), a leading provider of advanced transparent and opaque armor, architectural hardening and security products for Defense and Homeland Security, has settled its lawsuit against Southern California Gold Products, Inc., dba Gypsy Rack, and a second defendant in the same action, James McAvoy, for $250,000 paid to ADSI.

The complaint against the defendants asserted six counts: misappropriation of trade secrets and confidential information; breach of contract; unfair competition; conversion; violation of the Lanham Act; and interference with prospective economic advantage. Under the terms of the settlement, the defendants did not concede any fault or liability.

The settlement also entitles ADSI to receive a percentage of the proceeds Gypsy Rack may receive as a result of an ongoing lawsuit Gypsy Rack has initiated against certain insurance companies, which involves claims against these insurance companies that arose out of Gypsy Rack's defense against claims by ADSI.

Further information about the ADSI lawsuit is available in ADSI's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended September 30, 2009.

About American Defense Systems, Inc.
ADSI offers advanced solutions in the design, fabrication, and installation of transparent and opaque armor, security doors, windows and curtain wall systems for use by military, law enforcement, homeland defense and corporate customers. ADSI engineers also specialize in developing innovative, functional and aesthetically pleasing security applications for the mobile and fixed infrastructure physical security industry. For more information, visit the ADSI corporate Web site at [ www.adsiarmor.com ].

Some of the statements made by ADSI in this press release, including, without limitation, statements regarding ADSI's anticipated future growth, are forward-looking in nature. ADSI intends that any forward-looking statements shall be covered by the safe harbor provisions for such statements contained in the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "should," "expects," "anticipates," "intends," "plans," "believes," "estimates," "predicts," "potential," "continues" and similar expressions are forward-looking statements. ADSI cautions you that forward-looking statements are not guarantees of performance. ADSI undertakes no obligation and disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve known and unknown risks and uncertainties that may cause ADSI's actual future results to differ materially from those projected or contemplated in the forward-looking statements. Statements in this press release should be evaluated in light of these important factors.