Orient Paper Inc. (ONP: Quote) announced that it reached a proposed settlement of the securities class action lawsuit pending against the company and certain current and former officers and directors of the Company.
The company noted that the securities class action lawsuit was filed in the United States District Court for the Central District of California and alleges, among other things, that the Company issued materially false and misleading statements and omitted to state material facts that rendered its affirmative statements misleading as they related to the Company's financial performance, business prospects, and financial condition, and that the defendants failed to prevent such statements from being issued or corrected.
The terms of the proposed settlement call for dismissal of all the Orient Paper defendants from the action in exchange for a $2 million payment from the Company's insurer.
The parties expect to complete full documentation of the settlement and file a motion for preliminary approval of the class action settlement and approval of the class notice no later than July 30, 2012.
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by RTT Staff Writer
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