First Act Inc. Accepts $16.7 Million Settlement from Insurers for Brook Mays Music

First Act Inc. Accepts $16.7 Million Settlement from Insurers for Brook Mays Music

BOSTON, July 5 /PRNewswire/ -- First Act Inc. announced this week that it was paid $16.7 million by the insurers for Brook Mays Music to settle a civil lawsuit filed in 2003 against the Dallas, Texas musical instrument retailer and rental company. A unanimous 2005 jury verdict issued in U.S. District Court for Massachusetts found Brook Mays liable for making false advertising statements about First Act and that Brook Mays interfered with First Act's contracts and business relationships. The original jury award was for $20.7 million in damages.

First Act's Chairman of the Board, Bernard Chiu, approved the settlement to end the matter and better resume focus on First Act's mission to provide superior musical instruments at affordable prices. "Students and artists buy and play our instruments because of our product quality," he said. "We will continue to protect their ability to enjoy and appreciate this experience."

First Act President and CEO Mark Izen said, "The settlement enables us to concentrate on our core business of bringing more music to more people as we continue to transform our corporate vision into an inspiring reality."

The lawsuit ruling helps protect the company's successful business model, which channels well-made musical instruments to retailers, suppliers, and customers under a comprehensive support network. First Act's approach enables band directors to provide reliable, high-precision instruments to their students, and for the same students to own instruments that provide years of value. Added Chiu, "At a time when school systems nationwide face increasingly tight budgets, it is critical to keep music programs alive for students."

About First Act:

First Act Inc., based in Boston, MA, is a premier musical products Company. First Act's entrepreneurs, musicians, and artisans develop superior musical instruments that are made to be heard and crafted to last.

First Act's Studio for Artists designs and builds custom guitars for professional musicians in a progressive, sophisticated in-house studio. First Act's Concert Series(TM) offers band students a comprehensive range of instrument choices while First Act's line for teens and adults includes a wide range of guitars, drums, hand percussion, and accessories. First Act's Discovery(TM) line of instruments gives young children a musical head start.

Source: First Act Inc.

CONTACT: Jeff Walker of First Act Inc., +1-617-226-7920,
jwalker@firstact.com

Web site: http://www.firstact.com/

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