PHOENIX, June 10 /PRNewswire-FirstCall/ -- NutraCea (Pink Sheets: NTRZQ), a world leader in stabilized rice bran (SRB) nutrient research and technology, today announced that the United States District Court for the District of Arizona has granted preliminary approval of the previously announced settlement of the securities class action lawsuit against NutraCea and certain former officers and directors. The lawsuit was pending in United States District Court for the District of Arizona and the same claims were also filed in the United States Bankruptcy Court for the District of Arizona. The settlement provides full and complete settlement for all claims against all defendants.
The settlement remains subject to approval by the Bankruptcy Court and final approval by the District Court. A hearing on final approval of the settlement by the District Court is scheduled for October 1, 2010.
W. John Short, Chairman and CEO, commented, "The court's preliminary approval is an important step in finalizing the settlement of the shareholder class action lawsuit. We are optimistic that this lawsuit will be fully resolved at the October 1 final approval hearing, but as we all know, until the court's decision has been rendered there can be no assurance that the settlement will become final. In the meantime, our team at NutraCea is focused on growing our company for the benefit of our customers, creditors, employees and shareholders and we look forward to the final resolution of this lawsuit."
Anyone who purchased NutraCea shares between April 2, 2007 and February 23, 2009 may be entitled to a share of the settlement. Class members will receive a notice setting forth more details about the settlement, including how to submit a claim form.
This release contains forward-looking statements, including statements about NutraCea obtaining final District Court and Bankruptcy Court approval of the settlement, successfully resolving the lawsuit and growing its business. These statements are made based upon current expectations that are subject to risk and uncertainty. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward- looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic report.
NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.