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Thursday, 18.04.2024, 06:40
Manufacturer of ID-cards Gemalto regrets decision to end out-of-court negotiations
After the
Estonian Police and Border Guard Board's announcement on Thursday, Gemalto wishes to express its surprise
at the sudden decision by the Estonian Police and Border Guard Board to break
off the negotiation of the settlement agreement, Gemalto said in a press release.
The
Estonian Police and Border Guard Board on Wednesday filed a court action by
which it seeks a contractual penalty of 152 mln euros from Gemalto AG.
"Gemalto wishes to clarify that it may
not be held responsible in any way for this outcome as it has all along been
negotiating this amicable settlement agreement in strict confidence and in good
faith. It therefore deeply regrets this new approach taken by the Estonian Police
and Border Guard Board by filing a claim in court," the press release
says.
Gemalto also said that it cannot comment the claim as
it only holds for now the information given by the media, but wishes
nonetheless to highlight that the amount of the Estonian Police and Border
Guard Board claim mentioned in the press release is totally out of proportion
compared to the one they offered in the settlement agreement. Gemalto further emphasizes that it has
not breached and will continue to perform its contractual obligations.
Gemalto announced that they have demonstrated their
clear willingness to fully and finally settle out of court the pending claims
related to the e-ID Card supply contract, as it believes that this is in the
best interest of both parties.
"By
force of circumstance, Gemalto will
get prepared for the court case and fully trusts Estonian courts to allocate
respective responsibilities of the parties under the said contract and settle
the dispute with the Estonian Police and Border Guard Board accordingly;
therefore, no further comment will be made for the moment," the company
said.
The
Estonian Police and Border Guard Board on Wednesday filed a court action by
which it seeks a contractual penalty of 152 mln euros from Gemalto.
The action
was filed with the Harju County Court in connection with a breach of
contract by Gemalto AG that has to do
with the generating of electronic ID-card private keys outside the card's chip,
which was disclosed in May this year. In the action, the Police and Border
Guard Board is seeking a contractual penalty in the amount of 152 mln
euros, spokespeople for the Police and Border Guard Board said.