Charles & Colvard, Ltd. Receives Favorable Interim Award in Arbitration with Wolfspeed, Inc.

Charles & Colvard, Ltd. (NASDAQ: CTHR) recently announced that an interim award has been granted in its ongoing confidential arbitration with Wolfspeed, Inc. The arbitrators rejected Wolfspeed’s claims for expectation damages amounting to approximately $22.8 million.

The arbitration stems from a Supply Agreement entered into by Charles & Colvard with Wolfspeed back in December 2014. The agreement stipulated that Charles & Colvard would exclusively purchase SiC materials from Wolfspeed. However, Wolfspeed alleged that Charles & Colvard breached the agreement by failing to meet purchase obligations and failing to pay for delivered materials.

Following an arbitration hearing held during the week of September 30, 2024, on December 5, 2024, the arbitrators ruled in favor of Charles & Colvard. The Company is mandated to pay approximately $1.3 million for previously purchased products and approximately $2.0 million for raw materials received on consignment, positively impacting the Company’s balance sheet. Additionally, Wolfspeed is entitled to interest on the compensatory damages and certain fees and expenses.

Don O’Connell, the President and Chief Executive Officer of Charles & Colvard, expressed satisfaction with the outcome, considering it a significant victory for the Company and its shareholders. The acceptance of the interim award concludes a chapter that had previously cast uncertainty on the Company’s growth and operational strategies.

The interim award requires Wolfspeed to submit a petition for attorney’s fees and costs, which will be reviewed by the arbitrators for a final determination no later than January 4, 2025.

The Company issued a press release on December 11, 2024, providing detailed information on the arbitration outcome. Charles & Colvard remains focused on its strategic plans amidst this resolution.

This press release contains forward-looking statements that are subject to risks and uncertainties, as detailed in the Company’s filings with the Securities and Exchange Commission.

For more information about Charles & Colvard, please visit their website.

This article is based on information from an 8-K SEC filing by Charles & Colvard, Ltd. and the attached Exhibit 99.1 detailing the interim award issued in the arbitration with Wolfspeed, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Charles & Colvard, Ltd.’s 8K filing here.

Charles & Colvard, Ltd. Company Profile

Charles & Colvard, Ltd. operates as a fine jewelry company in the United States and internationally. The company operates in two segments, Online Channels and Traditional. It manufactures, markets, and distributes moissanite jewels and finished moissanite jewelry under the Charles & Colvard Created Moissanite brand; and premium moissanite gemstones under the Forever One brand name.