Paragon Technologies News Release

Rhea-AI Summary

Paragon Technologies (OTCID:PGNT) announced on March 4, 2026 that it has resolved all legacy litigation liabilities arising from governance actions taken by a prior board and counsel. All related liabilities and expenses have been fully paid and will be reflected in the company's 2025 annual financial results, to be published in the coming weeks. Management says independent directors prioritized minimizing legacy costs and that the company is focused on resuming its growth strategy.

Positive

• Legacy litigation fully resolved and liabilities paid
• Clearer governance enabled by resolution
• Management focus returned to growth strategy

Negative

• 2025 financials will include paid litigation expenses
• Unspecified cost of liabilities may affect 2025 results

Paragon Announces Final Resolution of Legacy Litigation Liabilities Created by Prior Board

EASTON, PENNSYLVANIA / ACCESS Newswire / March 4, 2026 / Paragon Technologies, Inc. (OTCID:PGNT) (Paragon' or the 'Company') today announced that it has resolved all legacy litigation liabilities arising from the litigation concerning entrenchment actions taken by a prior board of directors at the recommendation of certain prior counsel.

The litigation stemmed from a series of self-serving governance measures enacted by the former board at the recommendation of certain prior counsel, including disenfranchising bylaw amendment. Those actions were successfully challenged in defense of Paragon's stockholders.

All liabilities and expenses related to this litigation have been fully paid and will be reflected in the Company's 2025 annual financial results which will be publicly available in the coming weeks. "The independent directors worked hard to minimize such legacy liabilities and believe they have achieved a very meaningful and responsible outcome for stockholders," said Sham Gad, CEO of Paragon Technologies. Gad continued, "the Company has put legacy issues behind it and remains intensely focused on resuming its growth strategy."

About Paragon Technologies

Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate and investments.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company's operations, financial condition and performance and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, those related to: general economic conditions, including those in the markets in which the Company operates; the Company's ability to expand its revenue streams; technological changes in the Company's industry; the continued acceptance of the Company's distribution channel by vendors and customers; decreased demand for the Company's products and services and the Company's ability to retain or replace its significant customers; factors affecting the capital markets and share prices generally; economic and political risks of selling products in foreign countries, including risks of non-compliance with U.S. and foreign laws and regulations; cybersecurity risks and risks of damage and interruptions of information technology systems; and the Company's ability to complete acquisitions, strategic investments, divestitures, mergers or other transactions on acceptable terms or at all. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can management assess the impact of all such factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All statements in this press release other than statements that are purely historical are forward-looking statements. The Company does not intend and assumes no obligation, to update any forward-looking statements made in this press release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.

For further information, contact the company at ir@pgntgroup.com

SOURCE: Paragon Technologies Inc.

View the original press release on ACCESS Newswire

FAQ

What did Paragon (PGNT) announce on March 4, 2026 about litigation?

Paragon announced that it has resolved all legacy litigation liabilities and paid related expenses. According to the company, those amounts will be reflected in the company's 2025 annual financial results, which will be publicly available in the coming weeks.

How will the resolved liabilities affect Paragon's (PGNT) 2025 financial results?

The settlement and payments will be reported in Paragon's 2025 annual results and may reduce net income for that year. According to the company, all liabilities and expenses related to the litigation have been fully paid and will appear in the 2025 filing.

Does the March 4, 2026 Paragon (PGNT) release name the prior board or counsel involved?

No, the announcement does not identify specific individuals or firms by name. According to the company, the litigation arose from actions by a prior board and certain prior counsel and has now been resolved for stockholders.

What did Paragon (PGNT) say about future priorities after resolving litigation?

Paragon said it has put legacy issues behind it and is focused on resuming its growth strategy. According to the company, independent directors worked to minimize legacy liabilities and believe they achieved a responsible outcome for stockholders.

Will Paragon (PGNT) provide details of the litigation costs and settlement timing?

The company said specifics will appear in the 2025 annual financial results, which will be published in the coming weeks. According to the company, all related liabilities and expenses have been fully paid and will be reflected in that report.