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(Sharecast News) - Mobico said on Friday that its US subsidiary has been issued a termination notice by the Washington Metropolitan Area Transit Authority to stop operating paratransit services, amid an ongoing legal dispute between the parties.
The transport group said WMATA issued the notice on 12 May to Diamond Transportation Services, requiring it to cease operating the services with effect from that date.
Mobico said Diamond was cooperating with WMATA to ensure an efficient transition of services.
The development followed a civil lawsuit filed by Diamond on 28 January in the US District Court for the District of Columbia, alleging breach of contract by WMATA.
Mobico had previously detailed the claim in its unaudited 2025 results.
The company said that, because of ongoing and potential further reciprocal litigation, neither Mobico nor Diamond could comment further.
It added that there could be no certainty over the outcome of any ongoing or potential future litigation relating to the contract.
Mobico said it would provide a further update as appropriate.
At 1016 BST, shares in Mobico Group were down 1.14% at 20.88p.
Reporting by Josh White for Sharecast.com.
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