SPOKANE, Wash., Dec. 21— The Key Tronic Corporation said it would not be able to make some loan payments after a jury concluded it must pay $16.5 million for giving stolen trade secrets to the Microsoft Corporation.
A federal jury in Seattle found that Key Tronic misappropriated trade secrets and breached a confidentiality agreement with Fernando Falcon, Federico Gilligan and their company, F&G Scrolling Mouse L.L.C., Key Tronic said. The jury determined that Key Tronic disclosed the secrets to Microsoft, which used the information for its IntelliMouse products.
As a result of the verdict, Key Tronic said that as of Dec. 29 it will be in default of certain credit agreements with a lender to the company.
Key Tronic said it intends to seek a waiver of the default from the lender, which was not named in the company's statement announcing the jury verdict. Officials with the company, which is based in Spokane, were not immediately available for comment.
Key Tronic said it also will seek to have the verdict overturned and may pursue other options, including a possible suit against Microsoft.
Key Tronic's shares fell $1.07, or 44 percent, to $1.35 a share on Nasdaq.