SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): DECEMBER 30, 1997
PARAGON TRADE BRANDS, INC.
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of incorporation)
1-11368
(Commission File Number)
91-1554663
(IRS Employer Identification No.)
180 TECHNOLOGY PARKWAY, NORCROSS, GA 30092 (Address of
principal executive offices) (Zip Code)
(770) 300-4000
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
Page 1 of 5
Exhibit Index is at Page 4
<PAGE>
ITEM 5. OTHER EVENTS
See attached Exhibit 99.1.
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PARAGON TRADE BRANDS, INC.
By: /S/ ALAN J. CYRON
Name: Alan J. Cyron
Title: Chief Financial Officer
Dated: January 2, 1998
3
<PAGE>
EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
99.1 Press Release issued by Paragon Trade Brands, Inc. on
December 31, 1997
4
Exhibit 99.1
(For Immediate Release)
PARAGON TRADE BRANDS TO APPEAL DECISION
IN PATENT LITIGATION LAWSUIT
PARAGON ALSO TO APPEAL DISMISSAL OF PRIOR ANTITRUST CLAIM
NORCROSS, GEORGIA, December 31, 1997 -- Paragon Trade Brands, Inc. (NYSE: PTB)
today announced that an adverse judgment has been issued in its lawsuit with The
Procter & Gamble Company regarding whether either company has infringed a valid
patent of the other. The Court found P&G's two diaper patents to be valid and
infringed by Paragon's products, while rejecting Paragon's patent infringement
claims against P&G. The judgment entitles P&G to damages based on sales of
Paragon diapers containing an "inner leg gather" feature. While a final number
has not been entered by the court, Paragon estimates the liability to be
approximately $160 to $200 million.
Paragon intends to appeal this decision, as well as its antitrust counterclaim
against P&G which was previously dismissed by the Court. Paragon also announced
today that it had previously entered into an agreement with P&G which is
designed to ensure that this patent dispute will not inhibit Paragon's ability
to provide its customers a continuous supply of products for six months while
pursuing this appeal.
"We are extremely disappointed with the current decision in this litigation,"
stated Bobby Abraham, Chief Executive Officer of Paragon, "however, we continue
to believe that the patents asserted by P&G are invalid and not infringed by our
products. We will vigorously assert our position on appeal while evaluating all
options available to us."
"We have been in the store brand disposable baby diaper business for 25 years,"
Mr. Abraham noted. "We are absolutely committed to providing our customers
superior products and service. Protecting their interests has been and will
remain our top priority - they can count on us for that now and in the future."
Paragon Trade Brands is the leading manufacturer of store brand infant
disposable diapers in the United States and Canada. Paragon manufactures a line
of premium and economy diapers, training pants, feminine care and adult
incontinence products and household cleaners and air freshener products, which
are distributed throughout the United States and Canada, primarily through
grocery and food stores, mass merchandisers, warehouse clubs, toy stores and
drug stores that market the products under their own store brand names. Paragon
has also established international joint ventures in Mexico, Argentina and
Brazil for the sale of infant disposable diapers and other absorbent personal
care products.
Alan J. Cyron
Executive Vice President and Chief Financial Officer
Paragon Trade Brands, Inc.
180 Technology Parkway
Norcross, GA 30092
770/300-4200
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