The order became final and non-appealable on Nov. 11. The District Court for the District of Arizona had previously approved the stipulation on Oct. 4, and that order became final and non-appealable on Nov. 4.
Under the terms of the agreement, a settlement fund for class members in the amount of $1.5 million will be paid by the NutraCea's insurance company, plus 50% of any funds remaining in the insurance policy after payment of all valid claims (including legal fees), as long as there is $150,000 or more of funds remaining in the policy.
Plaintiffs had been seeking damages against NutraCea and certain former officers and directors for alleged federal and Arizona state securities law violations. The settlement provides full and complete settlement for all claims against all defendants. Pursuant to the terms of the stipulation and the approval received from the bankruptcy court, NutraCea has no current or future payment obligation related to these securities class action lawsuits.
“We are glad to put this matter behind us. The securities class action lawsuits filed against NutraCea in early 2009 have been a distraction to a management team who has been faced with enormous obstacles over the past 18 months,” said W. John Short, chairman and chief executive officer. “Further, these lawsuits resulted in significant unrecoverable legal and other expenses required to defend the charges filed in those suits.
“With the final approval of this settlement, we can now turn our full attention to the challenges and opportunities of building a profitable and sustainable business for our shareholders and other stakeholders."
