Knight Transportation Inc. has agreed not to acquire any additional stake in USA Truck Inc. for the next seven months as part of a lawsuit settlement, the carriers said.
The settlement ends a court case USA Truck had filed after Knight attempted to acquire it in September. USA Truck said Knight violated a confidentiality agreement.
“Our agreement with USA Truck represents a positive outcome for our company, as it resolves all related litigation while preserving our flexibility with respect to our investment,” Kevin Knight, Chairman and CEO of Knight, said in a statement late Feb. 4. “Knight Transportation may continue to own shares in USA Truck and, subject to the terms of the agreement, may consider its options in the future regarding that investment.”
“We are pleased that the parties have reached a settlement,” USA Truck said in its own statement. “By eliminating any of the distractions that have been created by this litigation, the settlement is a positive outcome for USA Truck’s employees, customers and shareholders.”
Knight currently owns 12.4% of USA Truck.
In addition to not buying more shares of USA Truck, Knight agreed not to vote at USA Truck’s shareholder meeting this year or seek representation on its board of directors throughout the term of the settlement agreement, which ends Sept. 30.
Knight Transportation is ranked No. 31 on the Transport Topics Top 100 list of for-hire carriers in the United States and Canada. USA Truck is ranked No. 52.