A proposed securities class action settlement was recently announced for a lawsuit involving Fuqi International, Inc.
Company background
Through its subsidiaries, Fuqi International designs, produces and distributes jewelry containing precious metals in China. The company manufactures custom jewelry items, and also creates ornaments for the luxury markets in the world's second-largest economy.
Lawsuit filing
In July 2010, a securities class action – with case number 10 Civ. 2515 – was filed against the company in the U.S. District Court for the Southern District of New York against Fuqi International, Inc., et al. The lawsuit made claims under Rule 10b-5, § 10(b) and § 20(a) of the Exchange Act of 1934.
Plaintiffs' lead counsel, Abraham, Fruchter & Twersky, LLP, informed eligible investors of the proposed settlement. These class members include all individuals or organizations that bought or came to own company common shares between May 15, 2009, and March 27, 2011, or purchased common stock in relation to the secondary offering that took place on or around July 22, 2009.
The law firm announced that a hearing has been scheduled, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the U.S District Court for the Southern District of New York, at the Daniel P. Moynihan U.S. Courthouse. This facility is located at 500 Pearl Street, Courtroom 24B, in New York City.
The Honorable Deborah Batts will preside over the hearing, which will determine several matters, including whether the court should approve the proposed settlement – which includes a principal sum of $7.5 million in cash, as well as accrued interest – as being adequate, fair and reasonable for class members.
If the court consents to this agreement, it will then figure out whether to dismiss the securities class action with prejudice, according to the terms and conditions outlined in the Stipulation of Settlement dated Sept. 8, 2014. The hearing will decide whether it should approve the proposed plan of allocation as being adequate, fair and reasonable, and then finally determine whether to approve both the reimbursement awards for lead plaintiffs and the application for attorneys fees from lead counsel.
If you either purchased or otherwise acquired the aforementioned securities during the class period, or in relation to the aforementioned secondary offering, your rights could be affected by these events. By contacting In re Fuqi International, Inc., you can obtain the Motion for Attorneys' Fees and Settlement Fairness Hearing, Notice of Proposed Settlement of Class Action and Proof of Claim and Release.
To be excluded from the class, you are required to postmark a request for exclusion by Jan. 29, 2015. Alternatively, sharing in the Net Settlement Fund will necessitate submitting a Proof of Claim and Release postmarked no later than April 21, 2015, which will then permit you to share in the recovery.
It is important to keep in mind that all members of the class will be bound by the final judgment unless they request exclusion from the class in a timely and valid manner. In addition, class members wishing to provide an objection to the class action settlement must do so either through delivery or mail by Jan. 29, 2015, at the latest.