August 6 2007
Fremont, CA: (Aug-03-07) A class action lawsuit was brought against ESS Technology and certain of its officers and directors in the United States District Court for the Northern District of California. On July 27, 2007, US District Judge Ronald Whyte entered a Final Judgment and Order of Dismissal with Prejudice and approved a settlement between the parties and dismissing the shareholder class action lawsuit. Though the company and its officers denied any liability and wrongdoing, they entered into the settlement to avoid the costs and uncertainties of protracted litigation. The entire settlement amount and any additional expenses will be covered by the company's directors and officers' insurance policy. The company said that they are considering total liquidation, which management estimates would bring between $6 million and $12 million in associated costs. The company has more than $50 million in debt.
[CNN NEWS: ESS TECH SETTLEMENT]
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