Synutra Wins Decision from Appellate Court Motion to Dismiss Affirmed by U.S. Court of Appeals for the Fourth Circuit
QINGDAO, China and ROCKVILLE, Md., Sept. 8, 2011 /PRNewswire-Asia/ -- Synutra International, Inc. (NASDAQ: SYUT) ("Synutra" or the "Company"), which owns subsidiaries in China that produce, market and sell nutritional products for infants, children and adults, today announced that the U.S. Court of Appeals for the Fourth Circuit ("Appellate Court") affirmed a previous ruling of the U.S. District Court for the District of Maryland ("District Court"). As announced in April 2010, the District Court had granted the Company's motion to dismiss a product liability lawsuit brought against the Company related to products allegedly sold by subsidiaries during the 2008 melamine crisis in China. The plaintiffs filed a notice of appeal thereafter. In its opinion issued on September 6, 2011 regarding the appeal, the judges of the Appellate Court affirmed the District Court's dismissal of the complaint on the grounds of forum non conveniens.
Mr. Weiguo Zhang, President and interim CFO of Synutra, commented, "We are gratified that the Appellate Court has affirmed the District Court decision that the case is dismissed. We believe this will help us to focus on our business and enhance shareholder value by removing uncertainty and alleviating investor concerns."
About Synutra International, Inc.
Synutra International, Inc. (Nasdaq: SYUT) is a leading infant formula company in China. It principally produces, markets and sells its products through its operating subsidiaries under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering 30 provinces and provincial-level municipalities in China. As of June 30, 2011, this network comprised over 630 independent distributors and over 1,000 independent sub-distributors who sell Synutra products in over 69,000 retail outlets.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations, assumptions, estimates and projections about Synutra International, Inc. and its industry. All statements other than statements of historical fact in this release are forward-looking statements. In some cases, these forward-looking statements can be identified by words or phrases such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "will," "aim," "potential," "continue," or other similar expressions. The forward-looking statements included in this press release relate to, among others, Synutra's goals and strategies; its future business development, financial condition and results of operations; the expected growth of the nutritional products and infant formula markets in China; market acceptance of Synutra's products; the safety and quality of Synutra's products; Synutra's expectations regarding demand for its products; Synutra's ability to stay abreast of market trends and technological advances; competition in the infant formula industry in China; PRC governmental policies and regulations relating to the nutritional products and infant formula industries, and general economic and business conditions in China. These forward-looking statements involve various risks and uncertainties. Although Synutra believes that the expectations expressed in these forward-looking statements are reasonable, these expectations may turn out to be incorrect. Synutra's actual results could be materially different from the expectations. Important risks and factors that could cause actual results to be materially different from expectations are generally set forth in Synutra's filings with the Securities and Exchange Commission. The forward-looking statements are made as of the date of this press release. Synutra International, Inc. undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.
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