On December 11, 2024, Charles & Colvard, Ltd. announced it received an interim award in its confidential arbitration with Wolfspeed, Inc. The award rejected Wolfspeed's claims for expectation damages of approximately $22.8 million.
The arbitrators limited Charles & Colvard's damages to $3.3 million, comprising $1.3 million for previously purchased inventory and $2.0 million for consigned inventory. Wolfspeed was awarded interest at 8% per annum on these compensatory damages.
This outcome significantly reduces the potential financial impact on Wolfspeed compared to the initial claims. The resolution allows both companies to move forward, with Charles & Colvard no longer obligated under a long-term purchase commitment.
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