Cemtrex Announces Final Court Approval of the Settlements in the Securities Class Action & Shareholder Derivative Lawsuits
June 04 2019 - 8:30AM
Business Wire
Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading global
technology company, today announced that the court has approved the
previously announced settlements in the alleged securities class
action lawsuit and related shareholder derivative litigations,
filed in the Eastern District of New York and New York state
court.
Under the class action settlement, the Company specifically
denies any liability or that it has engaged in any wrongdoing. On
behalf of the defendants, the Company’s insurer will pay $625,000
to the class of plaintiffs to resolve all claims asserted or could
have been asserted in the litigation.
Under the derivative litigation settlement, the Company and the
directors and officers of the Company named as defendants also deny
any liability or wrongdoing in connection with the allegations
contained in the lawsuit. The terms of the settlement require the
Company to implement certain corporate governance changes and
modify certain governance practices, and the Company’s insurer will
pay $100,000 to the plaintiffs’ counsel. Like the class action
settlement, the derivative litigation settlement resolves all
claims that were or could have been asserted in the
litigations.
“We are pleased to finally have the court approval of our
settlement, and clear this cloud that has been hanging over us for
the past two years,” said Saagar Govil, Cemtrex’s Chief Executive
Officer, “This settlement has concluded these lawsuits
expeditiously and further avoids interference on operations, which
we believe is beneficial to the Company and its shareholders,”
continued Mr. Govil.
The full settlement terms and all other filings in the class
action litigation can be found under the case caption: Cullinan v.
Cemtrex, Inc. et al., Case No. 2:17-cv-01067-JFB-AYS (E.D.N.Y.);
the full settlement terms and all other filings in the derivative
litigations are available under the following captions:
Desmond-Newman v. Govil, et al., Case No. 2:18-cv-03992 (E.D.N.Y.),
and Alami v. Govil, et al., No. 606635/2017 (N.Y. Sup. Ct., Suffolk
County).
The Company is represented by Doug Greene, a nationally
prominent securities litigation attorney, of the law firm of
BakerHostetler.
About Cemtrex
Cemtrex, Inc. (CETX) is a diversified technology company that's
driving innovation in a wide range of sectors, including smart
technology, virtual and augmented realities, advanced electronic
systems, industrial solutions, and intelligent security
systems.
www.cemtrex.com
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to our new product offerings or
any proposed fundraising activities. These forward-looking
statements are based on management's current expectations and are
subject to certain risks and uncertainties that could cause actual
results to differ materially from those set forth in or implied by
such forward looking statements. These risks and uncertainties
include, but are not limited to: operational losses and negative
cash flows; any need for additional financing; market acceptance of
our products; our ability to manufacture and develop effective
products and solutions; indebtedness to our lenders; current and
future economic conditions that may adversely affect our business
and customers; potential fluctuation of our revenues and
profitability from period to period which could result in our
failure to meet expectations; our ability to maintain adequate
levels of working capital; our ability to incentivize and retain
our current senior management team and continue to attract and
retain qualified scientific, technical and business personnel; our
ability to expand our product offerings or to develop other new
products and services; our ability to generate sales and profits
from current product offerings; rapid technological changes and new
technologies that could render certain of our products and services
to be obsolete; competitors with significantly greater financial
resources; introduction of new products and services by
competitors; challenges associated with expansion into new markets;
and, other factors discussed under the heading "Risk Factors"
contained in our Form 10-K filed with the Securities and Exchange
Commission. All information in this press release is as of the date
of the release and we undertake no duty to update this information
unless required by law.
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Investor RelationsCemtrex, Inc.Phone:
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