LONG ISLAND CITY, N.Y.--(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.
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.
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