NEWS: Valence Technology, Inc. Announces Settlement of Class-Action Securities Litigation Subject to Court Approval
biz.yahoo.com
HENDERSON, Nev., Feb. 10 /PRNewswire/ -- Valence Technology Inc. (Nasdaq: VLNC - news) today announced that a settlement has been reached in the securities class-action lawsuit that had been pending against the company and certain of its present and former officers and directors.
Under the settlement, which is subject to court approval and certain other ordinary contingencies, the claims against the company and all other defendants will be dismissed without presumption or admission of any liability or wrongdoing.
The full amount of the cash settlement and associated legal costs to date has been either previously expensed, reserved for or fully covered by the company's insurance carriers. Under the terms of the settlement Valence will pay $1.3 million in cash and 950,000 shares of common stock to the class fund. The company will take a charge for the impact of the stock portion of this settlement during the fourth quarter ending March 26, 2000.
Commenting on the announcement, Valence Chairman and Chief Executive Officer Lev Dawson stated, ``While we continue to deny liability, the settlement of these lawsuits is in our stockholders' best interest. Continuing the litigation would have been very expensive and distracting to management, and the settlement will resolve any uncertainty about the lawsuits among the company's stockholders, customers, suppliers and other business partners.' |
