Loading ...Settlement involves no additional financial contribution by the Company
January 13, 2010 – Arotech Corporation (NasdaqGM: ARTX) announced today that it has reached an agreement with lead plaintiffs to settle the consolidated putative securities class-action lawsuit originally filed in March 2007 in the United States District Court for the Eastern District of Michigan.
Under the terms of the proposed settlement, the lawsuit will be dismissed with prejudice, and Arotech and all current and former officers and directors named in the complaint will receive a full and complete release of all claims asserted against them in the litigation, as well as any related claims that could have been asserted. The claims will be settled for $2.9 million. The monetary payment to be made on behalf of Arotech and the individual defendants will be funded entirely from insurance proceeds. As a result, there will be no additional financial contribution by Arotech. The agreement is subject to court approval.
As stated in the settlement documents, Arotech denies any liability in connection with the litigation and denies the claims asserted by the lead plaintiffs in the complaint.
"The agreement resolves this issue in a way that is in the best interests of our shareholders," said Robert S. Ehrlich, Chairman and CEO of Arotech. "We believe this settlement provides Arotech with certainty on this lawsuit, eliminates the uncertainties and further expense associated with this litigation, and eliminates an unnecessary drain on management time," concluded Ehrlich.
About Arotech Corporation
Arotech Corporation is a leading provider of quality defense and security products for the military, law enforcement and homeland security markets. Arotech provides multimedia interactive simulators/trainers, lightweight armoring and advanced zinc-air and lithium batteries and chargers. Arotech operates through three major business divisions: Armor, Training and Simulation, and Batteries and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, Michigan and research, development and production subsidiaries in Alabama, Michigan and Israel.
