Rentech settles suits steming from restated 2008/09 financials
In California, Rentech reports that it has reached agreements to settle all of the class action lawsuits pending in federal court and all of the shareholder derivative lawsuits pending in state and federal court against the Company and a number of its current and former directors and officers.
The lawsuits relate to the Company’s restatement in December 2009 of certain of its financial statements for fiscal year 2008 and the first three quarters of fiscal year 2009. The Company believes that it is in the best interests of its stockholders to settle the matters at a reasonable cost to avoid potentially protracted and expensive litigation.
The Company and the individual defendants have denied any liability or wrongdoing in connection with the allegations contained in these lawsuits. For the lawsuits pending in the United States District Court for the Central District of California, the settlement calls for a fund of $1.8 million, from which plaintiffs’ counsel will seek an award of attorneys fees and expenses.
The Company expects that over 90% of the aggregate securities class action and shareholder derivative settlement payments will be covered by its insurance carriers. The settlements are subject to court approval and certain other conditions including notice to the Company’s stockholders.
Category: Fuels
