MINNEAPOLIS, Oct. 5, 2017 /PRNewswire/ -- Appliance Recycling
Centers of America, Inc. (Nasdaq: ARCI) ("ARCA" or the "Company"),
a leading provider of appliance retailing and recycling services,
today announced that the Hennepin
County District Court, State of
Minnesota, has granted final approval of a settlement of the
stockholder derivative lawsuit captioned Gray, et al. v.
Cameron, et al.
The plaintiffs in this lawsuit sought to assert claims
derivatively on behalf of ARCA against certain of the Company's
current and former officers and directors. The settlement
resolves all claims asserted in the lawsuit. The final
approval was granted by the court on September 29, 2017.
ARCA and the other defendants vigorously denied plaintiffs'
allegations, and have not admitted any liability or wrongdoing as
part of the settlement. The court made no findings or
determinations with respect to the merit of plaintiffs' claims, and
no payment is being made by ARCA or the other defendants.
As a condition of the settlement, ARCA has agreed to provide
certain training to employees in the Company's accounting
department for a period of one year. The court also granted
an application by plaintiffs' counsel for attorneys' fees, to be
paid by the Company's insurance carrier. Other than this
award of attorneys' fees, no payment or other consideration was
paid by ARCA nor its officers or directors in connection with the
settlement.
About ARCA
ARCA's business components are uniquely positioned to work
together to provide a full array of appliance-related services.
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.® sell new appliances directly to
consumers and provide affordable ENERGY STAR® options for energy
efficiency appliance replacement programs.
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SOURCE Appliance Recycling Centers of America, Inc.