Lear Corporation has been hit by a $US30 million verdict against it after Seton Company, one of its leather suppliers, filed a suit alleging that the interiors specialist had breached an agreement to purchase leather from Seton for seats for the life of the General Motors GMT 800 pickup truck and SUV programme.

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Seton had sought up to $97 million in compensatory and exemplary damages.


“We strongly disagree with the jury’s verdict and the damages award. We intend to challenge the verdict and, if necessary, seek an appeal,” said Daniel Ninivaggi, Lear’s secretary and general counsel.


As a result of the verdict, Lear currently expects to record a net charge of approximately $0.25 per share to second quarter 2005 net income.

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