MINNEAPOLIS, Oct. 28, 2016 /PRNewswire/ -- Appliance
Recycling Centers of America, Inc. (Nasdaq: ARCI), a leading
provider of appliance retailing and recycling services, today
announced that the United States District Court for the Central
District of California has
dismissed with prejudice all claims asserted by the lead plaintiffs
in a securities class action lawsuit against Appliance Recycling
Centers of America, Inc. ("ARCA" or the "Company") and certain
current and former officers of the Company.
As previously announced by the Company, on November 24, 2015 the Court granted the motion of
ARCA and its officers to dismiss the lawsuit commenced against them
on March 6, 2015, by Jason Feola, individually and as a putative
representative of a class consisting of purchasers of the Company's
common stock between March 15, 2012
and February 11, 2015. That
dismissal of the First Amended Complaint was without prejudice, and
the lead plaintiffs filed a Second Amended Complaint on
December 15, 2015. The Company
and its officers moved to dismiss the Second Amended Complaint, and
on August 25, 2016, the Court again
dismissed all claims asserted in the Second Amended Complaint
without prejudice. The lead plaintiffs did not pursue a
further amendment, and the Court entered final judgment, dismissing
all claims with prejudice, on October
21, 2016. No payment or any other consideration was
paid by ARCA or its officers in connection with the lawsuit's
dismissal.
Plaintiffs have the right to appeal the Court's dismissal within
30 days of the final judgment. Based on the Court's rulings,
the Company intends to seek the dismissal of a shareholder
derivative action in Minnesota
that was filed after the putative class action and was temporarily
stayed by agreement of the parties pending the outcome of the
dismissal motions in the putative class action lawsuit. The
Company and the other named defendants are represented by Orrick,
Herrington & Sutcliffe LLP.
"We are pleased with the Court's dismissal of the action," said
Tony Isaac, Chief Executive Officer
of ARCA. "We believe the ruling supports our position that the
lawsuit was frivolous and without merit. We will continue to
focus our efforts on paving the way for a brighter future, working
to serve our clients and to offer the highest quality service
levels."
About ARCA
ARCA's three business components are uniquely positioned in
the industry to work together to provide a full array of
appliance-related services. ARCA Advanced Processing, LLC
employs advanced technology to refine traditional appliance
recycling techniques to achieve optimal revenue-generating and
environmental benefits. ARCA (www.ARCAInc.com) is also the
exclusive North American distributor for UNTHA Recycling Technology
(URT), one of the world's leading manufacturers of technologically
advanced refrigerator recycling systems and recycling facilities
for electrical household appliances and electronic scrap.
ARCA's regional centers process appliances at end of life to remove
environmentally damaging substances and produce material byproducts
for recycling for utilities in the U.S. and Canada. Eighteen company-owned stores under
the name ApplianceSmart, Inc.® (www.ApplianceSmart.com)
sell new appliances directly to consumers and provide affordable
ENERGY STAR® options for energy efficiency appliance
replacement programs.
This press release contains statements that are
forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995, including statements regarding
ARCA's future success. These forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from the statements made, including the risks
associated with general economic conditions, competition in the
retail and recycling industries and regulatory risks. Other
factors that could cause operating and financial results to differ
are described in ARCA's periodic reports filed with the Securities
and Exchange Commission. Other risks may be detailed from time to
time in reports to be filed with the SEC.
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SOURCE Appliance Recycling Centers of America, Inc.