DIRTT Environmental Solutions Provides Legal Update on Claims

Latest Developments in DIRTT's Legal Proceedings

DIRTT Environmental Solutions Ltd. (TSX: DRT; OTC: DRTTF), a Canadian leader in industrialized construction, has recently provided an important update concerning its ongoing litigation against Falkbuilt, Smed, and Loberg. This legal battle is crucial for DIRTT, as it seeks to defend its trade secrets and claim damages for losses incurred.

The Court’s Decision in Utah

On February 5, 2025, a significant ruling was made by the U.S. District Court for the Northern District of Utah. The court decided to grant Falkbuilt's motion to dismiss DIRTT's claims filed in Utah under the principle of forum non conveniens. This legal term indicates that the Utah court viewed Canada as a more suitable venue for the case, considering that Canadian law governs the majority of DIRTT's claims. Consequently, the court redirected DIRTT's litigation to Canada, which it deemed the more appropriate setting for pursuing these matters.

Implications of the Ruling

This ruling has profound implications for DIRTT, emphasizing the importance of Canadian jurisdiction in relation to its corporate structure and legal claims, especially concerning its ownership of key trade secrets. Regardless of where the alleged theft occurred, the court acknowledged that any loss would ultimately cause damages to DIRTT, and thus should be resolved within a Canadian legal framework.

Upcoming Trial in Alberta

Looking ahead, the Court of King's Bench of Alberta scheduled DIRTT's Canadian litigation for an 8-week trial beginning on February 2, 2026. This imminent trial will focus on DIRTT's claims for compensatory damages, which could potentially rise above $50 million. In this setting, the court will evaluate whether Falkbuilt, Mogens Smed, Barrie Loberg, and any other parties involved are liable for the losses that DIRTT asserts to have incurred.

Diligence and Preparedness

The management at DIRTT is expressing confidence in the strength of their case as they prepare for this pivotal courtroom battle. The company is keen on recovering losses it claims to have suffered both domestically and internationally.

Who is DIRTT Environmental Solutions?

DIRTT is recognized as a pioneer in the field of industrialized construction. The company's innovative system combines both physical products and digital tools, empowering organizations and construction leaders to design high-performing, adaptable interiors. DIRTT’s solutions cater to various sectors, including workplace environments, healthcare, education, and public services. This flexibility allows clients to alter their spaces swiftly, reflecting their evolving needs while ensuring reliability in costs, scheduling, and project outcomes.

Commitment to Innovation

With headquarters located in Calgary, Alberta, DIRTT persistently advances its operations to enhance adaptability and functionality in interior construction, further solidifying its leadership position in the industry.

Frequently Asked Questions

What recent legal developments has DIRTT announced?

DIRTT has updated its stakeholders regarding the dismissal of its claims in Utah and the upcoming trial in Alberta.

What was the basis for the Utah court's decision?

The Utah court dismissed the case on the grounds that Canada serves as an adequate alternative forum and relevant Canadian laws apply.

When is the Canadian trial expected to take place?

The trial in the Court of King's Bench of Alberta is scheduled to start on February 2, 2026, spanning eight weeks.

What damages is DIRTT seeking in the litigation?

DIRTT is pursuing damages potentially exceeding $50 million as a result of the claims against Falkbuilt and others.

How does DIRTT differentiate itself in the construction industry?

DIRTT is known for its unique integration of digital tools and customizable physical products, allowing high adaptability in interior construction solutions.

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