10:08 AM EST, 02/11/2025 (MT Newswires) -- DIRTT Environmental Solutions ( DRTTF ) , down 3.4% on last look, on Tuesday said the U.S. District Court for the Northern District of Utah has declined to hear its case, ruling that Canada is an "adequate alternative forum" and Canadian law applies to most of DIRTT's claims. The court granted Falkbuilt's motion to dismiss the case in Utah.

The Utah Court also found that DIRTT's Canadian company, DIRTT Environmental Solutions ( DRTTF ), owns the trade secrets that were the subject matter of the Utah claim.

Last November, the Court of King's Bench of Alberta, scheduled the Canadian lawsuit for an 8-week trial starting next February. The Canadian Court will determine whether Falkbuilt, Mogens Smed, Barrie Loberg and others wrongfully caused DIRTT to suffer damages, which could exceed $50 million. DIRTT says it is confident in the strength of its case.

According to a March 2022 release, DIRTT alleged that Mogen Smed, Barrie Loberg and others began developing a new competing company immediately after Smed's departure from DIRTT. The new company operated through a secret group comprised of then DIRTT employees and distribution partners known as the TTIMit Group. Members of the Group conspired to solicit DIRTT employees and distribution partners, and design and sell competing products using DIRTT's confidential information.

The company's shares were last seen down $0.04, to $1.13, on the Toronto Stock Exchange.

Price: 1.13, Change: -0.04, Percent Change: -3.42