Coachmen shares climb following lawsuit verdict

Shares of Coachmen Industries Inc. shot higher on Monday after the recreational vehicle maker said it received a favorable verdict in a lawsuit against Crane Composites Inc.

Coachmen alleged breach of contract and warranty claims, claiming that Crane sold it defective sidewall material.

No damages have yet been awarded, but Coachmen says total potential claims amount to more than $85 million. Coachmen said it expects the final phase of the trial this fall.

"We are very pleased with the overwhelming victory in the liability phase and are cautiously optimistic about the final outcome of this matter," said Todd Woelfer, Coachmen's general counsel, in a statement.

Shares of Coachmen rose 25 cents, or 17.5 percent, to $1.70 in midday trading.

Crane Composites' parent company, Crane Co., said in a regulatory filing on Friday it is exploring options to overturn the verdict and is in discussions with its insurers regarding coverage of the liability. A Crane spokesman declined to comment further on Monday.

Shares of Crane fell 2 cents to $17.40 in midday trading.