Candie's, Inc. Announces Class Action Settlement Agreement.Business Editors PURCHASE, N.Y.--(BUSINESS WIRE)--Feb. 2, 2000 Candie's, Inc. (Nasdaq NMS See NetWare Management System. symbol: CAND) (&uot;the Company&uot;) today announced that it has reached a settlement agreement regarding the class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax filed against the Company and certain of its officers, directors, and former employees. The structure of the settlement includes $4 million in cash and $6 million in common and convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The Company will apply insurance proceeds towards a part of the cash portion of the settlement. The common stock, with the value of $2 million, will be issued in May 2000. The $4 million of the preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. will convert into common shares based on the price of the Company's stock on the first and second anniversary dates of the court approval of the settlement. The settlement agreement is subject to Court approval. The court hearing on approval of the settlement is expected to be conducted in or about May 2000. Commenting on the announcement, Neil Cole Neil Cole (born 1 March 1972) is an English television presenter, comedian, radio broadcaster and actor. Early life Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford. He studied English & French Literature at Bristol University. , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, &uot;We are extremely pleased to have resolved the lawsuit this quickly. The settlement that we agreed to was in the best interest of our shareholders and allows our management team to focus all of our energy on growing Candie's and Bongo footwear and licensed products.&uot; Candie's is engaged primarily in the design, marketing, and distribution of footwear and handbags under the Candie's and Bongo trademarks within the United States to department, specialty, chain, and seven company-owned Candie's stores and to specialty stores internationally. Candie's also arranges for the manufacture of footwear products for mass market and discount retailers under the private label brand of the retailer or other trademarks owned or licensed by Candie's. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and OF 1995. The statements which are not historical facts contained in this press release are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors all of which are difficult or impossible to predict and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, uncertainty regarding continued market acceptance of current products and the ability to successfully develop and market new products particularly in light of rapidly changing fashion trends, the impact of supply and manufacturing constraints or difficulties relating to the Company's dependence on foreign manufacturers, uncertainties relating to customer plans and commitments, competition, uncertainties relating to economic conditions in the markets in which the Company operates, the ability to hire and retain key personnel, the ability to obtain capital if required, the risks of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the risks of uncertainty of trademark protection, Year 2000 compliance, the uncertainty of marketing and licensing the trademarks acquired during fiscal 1999 and other risks detailed and in the Company's Securities and Exchange Commission filings, and uncertainty associated with the impact on the Company in relation to recent events discussed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 1999. The words &uot;believe&uot;, &uot;expect&uot;, &uot;anticipate&uot;, &uot;seek&uot; and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date the statement, was made. |
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