LAWSUITS NEWS & LEGAL INFORMATION
Rentech Reaches Tentative Settlements of Securities Class Actions
This is a settlement for the Securities/Stock Fraud lawsuit.
Los Angeles, CA: Rentech, Inc. (NYSE AMEX: RTK) has reached agreements to settle all of the securities 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' restatement in December 2009 of certain of its financial statements for fiscal year 2008 and the first three quarters of fiscal year 2009.
The settlement for the consolidated class action lawsuits pending in United States District Court for the Central District of California (In re Rentech Securities Litigation, Lead Case No. 2:09-cv-09495-GHK-PJW) provides for a settlement fund of $1.8 million, from which plaintiffs' counsel will seek an award of attorneys fees and expenses.
The settlements for the consolidated shareholder derivative lawsuits pending in United States District Court for the Central District of California (In re Rentech Derivative Litigation, Lead Case No. 2:10-cv-0485-GHK-PJW) and the Superior Court of the State of California for the County of Los Angeles (Andrew L. Tarr v. Dennis L. Yakobson, et al., LASC Master File No. BC430553) provide that the Company will adopt certain governance practices, and pay (or cause its insurance carrier to pay) plaintiffs' attorneys fees and expenses of up to $300,000. 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' stockholders.
Published on Mar-23-11
The lawsuits relate to the Company' restatement in December 2009 of certain of its financial statements for fiscal year 2008 and the first three quarters of fiscal year 2009.
The settlement for the consolidated class action lawsuits pending in United States District Court for the Central District of California (In re Rentech Securities Litigation, Lead Case No. 2:09-cv-09495-GHK-PJW) provides for a settlement fund of $1.8 million, from which plaintiffs' counsel will seek an award of attorneys fees and expenses.
The settlements for the consolidated shareholder derivative lawsuits pending in United States District Court for the Central District of California (In re Rentech Derivative Litigation, Lead Case No. 2:10-cv-0485-GHK-PJW) and the Superior Court of the State of California for the County of Los Angeles (Andrew L. Tarr v. Dennis L. Yakobson, et al., LASC Master File No. BC430553) provide that the Company will adopt certain governance practices, and pay (or cause its insurance carrier to pay) plaintiffs' attorneys fees and expenses of up to $300,000. 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' stockholders.
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