Rentech Announces Final Court Approval of Settlement of Shareholder Derivative Lawsuits
July 27 2011 - 9:00AM
Business Wire
Rentech, Inc. (NYSE AMEX: RTK) announced today that it has
received final court approval for the settlements of the
shareholder derivative lawsuits against the Company and a number of
its current and former directors and officers. The lawsuits related
to the Company’s restatement in December 2009 of certain of its
financial statements for fiscal year 2008 and the first three
quarters of fiscal year 2009. The Company believes that it is in
the best interests of its stockholders to settle the matters at a
reasonable cost to avoid potentially protracted and expensive
litigation. The Company and the individual defendants have denied
any liability or wrongdoing in connection with the allegations
contained in these lawsuits.
The approval of settlements for the consolidated shareholder
derivative lawsuits 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 $300,000. The Company expects that
over half of the aggregate shareholder derivative settlement
payments will be covered by its insurance carriers.
About Rentech, Inc.
Rentech, Inc., incorporated in 1981, provides alternative and
clean energy solutions and manufactures and sells nitrogen
fertilizer products. The Company's Rentech-SilvaGas and
Rentech-ClearFuels biomass gasification processes can convert
multiple biomass feedstocks into synthesis gas (syngas) for
production of renewable fuels and power. Combining the gasification
processes with the Company’s unique application of syngas
conditioning and clean-up technology and the patented Rentech
Process based on Fischer-Tropsch chemistry, the Company offers
integrated solutions for production of synthetic fuels from
biomass. The Rentech Process can also convert syngas produced from
fossil resources using other technologies into ultra-clean
synthetic jet and diesel fuels, specialty waxes and chemicals.
Final product upgrading and acid gas removal technologies are
provided under an alliance with UOP, a Honeywell company. The
Company develops projects and licenses these technologies for
application in synthetic fuels and power facilities worldwide.
REMC, the Company's wholly-owned subsidiary, manufactures and sells
nitrogen fertilizer products including ammonia, urea ammonia
nitrate, urea granule, and urea solution in the corn-belt region of
the central United States.
Safe Harbor Statement
This press release contains forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995
about matters such as the Company's settlement agreements. These
statements are based on management's current expectations and
actual results may differ materially as a result of various risks
and uncertainties. Other factors that could cause actual results to
differ from those reflected in the forward-looking statements are
set forth in the Company's prior press releases and periodic public
filings with the Securities and Exchange Commission, which are
available via Rentech's web site at www.rentechinc.com. The
forward-looking statements in this press release are made as of the
date of this press release and Rentech does not undertake to revise
or update these forward-looking statements, except to the extent
that it is required to do so under applicable law.
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