Acushnet Company announced that on August 14, 2009, the United States Court of Appeals for the Federal Circuit granted the company's request for a new trial and issued other favorable decisions in its patent dispute with Callaway Golf. In its opinion, the Court of Appeals' three-judge panel found that the inconsistent jury verdict holding one patent claim invalid and others not invalid was irreconcilable and could not stand. As a result, the Court of Appeals overturned the judgment and injunction entered by the District Court in November 2008 and sent the case back to that court for a new trial. The court also found that the trial court erred in rejecting an important Acushnet defense before the trial and in not allowing certain evidence supporting that defense. Acushnet now will be able to assert that defense and the supporting evidence, in addition to its other significant defenses, in a new trial before the District Court. The ruling also confirms that all Titleist Pro V1 products can be sold, bought and played with confidence and without any threat of disruption in service.

Callaway Golf Co. announced that the United States Court of Appeals for the Federal Circuit has rejected the majority of the arguments raised by the Acushnet Company on its appeal from the trial court's ruling that the Titleist Pro V1 family of golf balls had infringed valid patents owned by Callaway. In particular, the Court specifically rejected Acushnet's request to dismiss the entire case. The appellate court instead returned the case to the United States District Court for the District of Delaware for further proceedings on certain issues specifically identified in the opinion. Callaway Golf is confident that it will prevail, and looks forward to presenting its claim for damages.

Acushnet Company plans to lay off 169 workers due to a sharp drop in worldwide sales of Titleist golf balls. The cuts will affect plants in New Bedford and Dartmouth and custom operations in New Bedford and Fairhaven. The layoffs hit about 11% of the company's Massachusetts work force and come on the heels of a 12% reduction in January.