Shimmick Corporation announced on October 31, 2024, that its joint venture, Shimmick/Danny's Joint Venture (SDJV), reached a settlement in the Golden Gate Bridge Project litigation. Under the terms of the agreement, SDJV will receive $97 million before the end of 2024 as reimbursement for costs incurred on the project. This settlement resolves the company's last major outstanding legal claim related to its legacy projects.
The settlement also includes a reduction of the outstanding scope of work by approximately $6.0 million and an extension of the project completion timeline. Shimmick expects to achieve substantial completion of its onsite portions of the project in the third quarter of 2025. The company plans to use the remaining proceeds, after subcontractor pass-through claims, for ongoing operations, including the completion of the GGB Project.
Management stated that this resolution is a major step forward in its transformation plan, allowing the company to concentrate additional attention and financial resources on advancing its core projects. Preliminary financial results for the fiscal third quarter of 2024 are expected to be between breakeven and a small loss, as continued losses in legacy and foundation projects are anticipated to largely offset the settlement's impact after accounting for various costs.
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