Diceon Electronics and Calvary Settle Suits Against Each Other

Diceon Electronics Inc. and Calvary Holdings Inc. said Monday that they have settled lawsuits against each other related to Calvary’s unsuccessful attempt to take control of Diceon’s board earlier this year.

Calvary, a San Diego investment partnership, sued Diceon last year after Calvary made an unsolicited offer valued at $27 million to acquire the struggling manufacturer of computer circuit boards. Diceon filed a countersuit. In January, Diceon shareholders overwhelmingly rejected an attempt by Calvary to take control of Diceon’s board.

As part of the settlement, each company will be responsible for its own legal costs. Diceon has said the legal fight cost it $1.5 million. Calvary, which wouldn’t estimate its legal expenses, also agreed not make an unfriendly buyout offer for Diceon for three years.

“We’re glad this is over,” said Peter Jonas, Diceon’s vice chairman.

Calvary withdrew its offer to acquire Diceon last month, offering no explanation.

In late October, an investor sued Calvary and its president, James Arabia, alleging that Arabia used $1.1 million of her funds without her “complete knowledge” for the takeover fight. The suit, filed in San Diego Superior Court, seeks unspecified damages plus proceeds from the sale of 100,000 shares of Diceon stock held by Calvary.

The investor, Bernice H. Feicht of Chicago, declined to comment on the suit. Arabia denied any wrongdoing and called the allegations “preposterous.”