Rentech Announces Final Court Approvals of Settlements of Securities Class Action and Shareholder Derivative Lawsuits
28 September 2011 - 11:00PM
Business Wire
Rentech, Inc. (NYSE AMEX: RTK) announced today that it has
received final court approvals for the settlements of the
securities class action and 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 believed that it was 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 settlement for the consolidated class action lawsuits 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 receive an award of
attorneys fees and expenses. The 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 adopt certain governance
practices, and pay (or cause its insurance carrier to pay)
plaintiffs' attorneys fees and expenses of $300,000. Over 90% of
the aggregate securities class action and shareholder derivative
settlement payments are covered by Rentech’s 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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