NANX has an oral settlement for its class action suits:
biz.yahoo.com
Nanophase Technologies Announces Tentative Settlement
BURR RIDGE, Ill., Aug. 10 /PRNewswire/ -- Nanophase Technologies Corporation (Nasdaq: NANX), a leader in nanomaterials and nanoengineered products, today announced that it has reached an oral agreement in principle to settle five consolidated securities class actions filed against it, certain of its former officers, certain of its former and current directors, and the underwriters of the company's initial public offering of common stock, pending in the United States District Court for the Northern District of Illinois, for $4,025,000. Under the terms orally agreed upon, the tentative settlement will successfully resolve all claims against all defendants sued in these consolidated class actions, alleging certain claims under the federal Securities Act of 1933 on behalf of certain persons who purchased the company's common stock from November 26, 1997 through January 8, 1998, as more fully described in the company's Annual Report on Form 10-K. The settlement is not an admission of liability by any party.
The company anticipates that the settlement will be funded primarily by the company's directors and officers liability insurance, and that the settlement payment will not have a material adverse effect on Nanophase's financial position or results of operations. The tentative settlement is subject to the parties preparing and signing a definitive Stipulation of Settlement, subsequent submission of that formal Stipulation to the court for preliminary approval, notice to class members, and subsequent final judicial approval.
This settlement will not resolve a separate securities class action lawsuit filed against the company, certain of its former officers, certain of its current and former directors, and the underwriters of the company's initial public offering of common stock, pending in the United States District Court for the Northern District of Illinois. The separate lawsuit alleges certain claims under the federal Securities Exchange Act of 1934 on behalf of certain former preferred stockholders whose shares of preferred stock were converted into common stock on or about the date of the initial public offering, as more fully described in the company's Annual Report on Form 10-K. The company believes that the allegations of the preferred stockholders' complaint are without merit. Defendants' joint motion to dismiss that complaint is fully briefed and under advisement by the court.
"We believe that the decision to settle the consolidated class actions for amounts within insurance policy limits is in our stockholders' best interests," said Joseph Cross, Nanophase's president and CEO. "The settlement will avoid continuing distraction and enable us to maintain our concentration exclusively on the company's business development initiatives and expected progress toward increasing product revenues during the fourth quarter of 2000 and during 2001. At this point in time, growing revenue and extending our technology lead in the field of nanocrystalline material is definitely the path toward maximizing shareholder value."
Nanophase Technologies Corporation provides engineered solutions utilizing nanocrystalline materials for a variety of industrial product applications. Using proprietary technology to produce nanocrystalline materials, the company creates products with unique performance attributes. The company's global customer base includes a number of Fortune 500 companies. Nanophase trades on the Nasdaq NMS under the symbol "NANX." Visit the company's web site at www.nanophase.com .
The words "expect," "anticipates," "plans," "forecasts" and similar expressions are intended to identify forward looking statements. Statements contained in this news release that are not historical facts are forward looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results for future periods to differ materially from those expressed in this news release. These important factors include, without limitation: a decision of the customer to cancel a purchase order or supply agreement; demand for, and acceptance of, the Company's nanocrystalline materials; changes in development and distribution relationships; the impact of competitive products and technologies; and other risks indicated in the Company's current Annual Report on Form 10-K, as filed with the Securities and Exchange Commission. Nanophase undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
For Additional Information on Nanophase Technologies by fax at no cost, dial 1-800-PRO-INFO, code NANX.
SOURCE Nanophase Technologies Corporation
CO: Nanophase Technologies Corporation
ST: Illinois
IN: CPR
SU: LAW
08/10/2000 16:34 EDT prnewswire.com |
