Helionetics Inc., an Irvine defense electronics manufacturer, said Monday that former Chairman Charles W. Missler has agreed to pay the company $1.6 million to settle a conflict-of-interest suit filed against him in August.
The out-of-court settlement calls for Missler to make an initial payment of $400,000 and to pay the remaining $1.2 million, plus interest at a 10% annual rate, over the next 10 years.
Helionetics President Michael Mann called the settlement a fair one for the company and said its terms approached the $2 million that the company had sought in compensatory damages from Missler. The company also asked for $5 million in punitive damages, but no such terms were included in the deal.
The suit alleged that, while employed as Helionetics' chairman and chief executive, Missler controlled an outside company that purchased another company--a small defense electronics maker--that Missler had earlier rejected as a potential investment for Helionetics.
The suit charged that the purchased company, Resdel Industries in Arcadia, would have been valuable to Helionetics and that Missler took improper personal advantage of the opportunity.