Federal Judge Approves Final Settlement of Accelr8 Class Action Suit
DENVER, May 22 /PRNewswire-FirstCall/ -- On May 20, 2003, Federal Judge, the Honorable John L. Kane, approved the final settlement of the Accelr8 Technology Corporation (OTC Bulletin Board: ACLY) Securities Litigation Civil Action No. 00-K-938. Previously, Accelr8 announced the agreement to settle the class action lawsuit, subject to approval of the court. The final approval marks the end of three and a half years of litigation surrounding the alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder relating to the Company's accounting and public disclosure from October 1997 to March 1999. The final terms of the settlement call for the payment of $450,000 and the issuance of 375,000 shares of Accelr8 common stock to a settlement fund. Monies were paid to the settlement fund March 4, 2003. In approving the settlement, the Court noted the difficulties the class faced in proving any right to recovery. David A. Zisser of Isaacson, Rosenbaum, Woods & Levy, attorney for Accelr8, recommended approval of the settlement, citing the sound business decision to terminate an open ended litigation expense. As previously reported, Accelr8's liability insurance carrier, Agricultural Excess and Surplus Insurance Company (AESIC) paid Accelr8 $825,000 cash to settle a lawsuit brought by the insurance carrier in 1999 against Accelr8 for allegedly filing false representations in its 1998 10K regarding product capability and the accounting for its Year 2000 toolset. Thomas V. Geimer, Chairman and CEO of Accelr8, noted that this payment offsets the costs of settlement of the class action. Mr. Geimer characterized the final court approval as "the end of a long battle" and noted that, "in settling the action brought by the SEC the Company was never required to restate its financial results." Mr. Geimer pointed out that the shareholders of Accelr8 still own a company with significant assets, a viable public market for its securities and a promising new business in the DNA/protein microarraying arena. Certain statements in this news release may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward--looking statement, including those detailed in the company's filings with the Securities and Exchange Commission.
SOURCE Accelr8 Technology Corporation
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