GSI Group Inc. Announces Release of Shares Held in Escrow
BEDFORD, Mass., Feb. 18, 2011 /PRNewswire/ -- GSI Group Inc. (Nasdaq: GSIG) (the "Company" or "GSI") announced today that the United States District Court for the District of Massachusetts has entered an order granting final approval of the previously announced settlement in the putative shareholder class action entitled Wiltold Trzeciakowski, Individually and on behalf of all others similarly situated v. GSI Group Inc., Sergio Edelstein, and Robert Bowen, Case No. 08-cv-12065 (GAO), filed on December 12, 2008. The Company's contribution to the settlement amount was limited to the balance of the Company's self-insured retention.
As a result of the court's final approval of the settlement, 993,743 shares of the Company's common stock (as adjusted for the Company's 1-for-3 reverse stock split) that were placed in a reserve account and held in escrow for the benefit of the holders of Section 510(b) claims (as defined in the Company's final Chapter 11 plan of reorganization) will be released to the Company's shareholders entitled to such shares. The Company expects to distribute the shares to each shareholder entitled to such shares as soon as practicable in the same manner as such shareholder received shares of the Company following the Company's emergence from bankruptcy.
GSI also announced that as a smaller reporting company, it expects to file its 2010 Annual Report on Form 10-K on or before March 31, 2011 as required by Securities and Exchange Commission rules.
About GSI Group Inc.
GSI Group Inc. supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are listed on The NASDAQ Stock Market (GSIG).
More information about GSI is available on the company's website at www.gsig.com.
Safe Harbor and Forward Looking Information
Certain statements in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "expect," "intend," "anticipate," "estimate," "plan," and other similar expressions. These forward-looking statements include, but are not limited to, statements related to: the timing and manner of distribution of the escrowed shares; the expected timing of the Company's Form 10-K; and other statements that are not historical facts.
These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, the following: the potential adverse impact of the Company's recently completed Chapter 11 bankruptcy proceedings on the Company's business, financial condition or results of operations; the potential adverse impact of the SEC's formal investigation relating to its review of the Company's accounting practices and the restatement of the Company's historical consolidated financial statements; the highly unpredictable nature of the semiconductor and electronics materials processing industry; the Company's ability to manage its significant indebtedness in light of current economic and business conditions; the Company's ability to grow and increase profitability; the Company's ability to quickly increase manufacturing capacity and promptly respond to fluctuating product demands; the Company's need to invest in research and development; the Company's ability to develop and deliver new competitive technology and enhancements and customer acceptance thereof; the effects of competition; the Company's ability to identify and hire permanent senior management; the Company's failure to identify and manage weaknesses in internal controls; the Company's ability to file timely with the SEC in the future; and the Company's ability to convert bookings and backlog into shipments or revenue, as they are subject to termination or cancellation under certain circumstances. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company's operating results and financial condition are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, the Company's Current Report on Form 8-K filed on June 4, 2010, and in the Company's subsequent filings with the SEC made prior to or after the date hereof. Such statements are based on the Company's management's beliefs and assumptions and on information currently available to the Company's management. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document except as required by law.
For more information contact:
GSI Group Investor Relations
Telephone: (781) 266-5137
SOURCE GSI Group Inc.