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.
About Cemtrex
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.
Safe Harbor Statement
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to our new product offerings or any
proposed fundraising activities. These forward-looking statements are
based on management’s current expectations and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward looking
statements. These risks and uncertainties include, but are not limited
to: operational losses and negative cash flows; any need for additional
financing; market acceptance of our products; our ability to manufacture
and develop effective products and solutions; indebtedness to our
lenders; current and future economic conditions that may adversely
affect our business and customers; potential fluctuation of our revenues
and profitability from period to period which could result in our
failure to meet expectations; our ability to maintain adequate levels of
working capital; our ability to incentivize and retain our current
senior management team and continue to attract and retain qualified
scientific, technical and business personnel; our ability to expand our
product offerings or to develop other new products and services; our
ability to generate sales and profits from current product offerings;
rapid technological changes and new technologies that could render
certain of our products and services to be obsolete; competitors with
significantly greater financial resources; introduction of new products
and services by competitors; challenges associated with expansion into
new markets; and, other factors discussed under the heading “Risk
Factors” contained in our Form 10-K filed with the Securities and
Exchange Commission. All information in this press release is as of the
date of the release and we undertake no duty to update this information
unless required by law.
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