LAWSUITS NEWS & LEGAL INFORMATION
Preliminary Settlement Announced with HiEnergy Technologies
This is a settlement for the Securities/Stock Fraud lawsuit.
A settlement was announced today, with the chapter 7 bankruptcy trustee in connection with a class action lawsuit pending against HiEnergy Technologies Inc, in the U.S. District Court for the Central District of California.
The class action complaint alleges claims under the federal securities laws against HiEnergy Technologies, Inc. ("HiEnergy") arising from alleged misrepresentations and omissions of material facts during 2002 and 2003. The proposed Settlement with HiEnergy's chapter 7 bankruptcy trustee calls for the trustee to assign to the lead plaintiff the bankruptcy estate's contingent first party rights against Navigators Insurance Company (Navigators) for that insurance provider's alleged wrongful refusal to provide defense and indemnity benefits to HiEnergy under an insuring agreement with HiEnergy for liability insurance coverage. In return for such assignment, the Class will release HiEnergy, its officers and directors and related persons from any liability for claims related to this action. In addition, the Class will pay HiEnergy's bankruptcy estate 25% of the net proceeds obtained by prosecuting the lawsuit against Navigators to assert HiEnergy's rights under its liability insurance policy with Navigators.
Lead Plaintiff has not yet recovered any funds for the Class. Class members need not file any claims or take any action unless and until a recovery is obtained, at which time further notice and directions to Class members shall be issued.
Published on Oct-1-08
The class action complaint alleges claims under the federal securities laws against HiEnergy Technologies, Inc. ("HiEnergy") arising from alleged misrepresentations and omissions of material facts during 2002 and 2003. The proposed Settlement with HiEnergy's chapter 7 bankruptcy trustee calls for the trustee to assign to the lead plaintiff the bankruptcy estate's contingent first party rights against Navigators Insurance Company (Navigators) for that insurance provider's alleged wrongful refusal to provide defense and indemnity benefits to HiEnergy under an insuring agreement with HiEnergy for liability insurance coverage. In return for such assignment, the Class will release HiEnergy, its officers and directors and related persons from any liability for claims related to this action. In addition, the Class will pay HiEnergy's bankruptcy estate 25% of the net proceeds obtained by prosecuting the lawsuit against Navigators to assert HiEnergy's rights under its liability insurance policy with Navigators.
Lead Plaintiff has not yet recovered any funds for the Class. Class members need not file any claims or take any action unless and until a recovery is obtained, at which time further notice and directions to Class members shall be issued.
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