Cytec To Take Charge for Special Item; Carbon Fiber Federal Class Action Lawsuit Settled.WEST PATERSON West Paterson (păt`ərsən), borough (1990 pop. 10,982), Passaic co., NE N.J., a suburb of Paterson; inc. 1914. Electric, electronic, and photographic products are made in the borough. , N.J. -- Cytec Industries Inc., (NYSE NYSE See: New York Stock Exchange :CYT) announced it has signed a stipulation of settlement with the plaintiffs in the carbon fiber federal 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 for alleged price fixing price fixing n. a criminal violation of federal anti-trust statutes, in which several competing businesses reach a secret agreement (conspiracy) to set prices for their products to prevent real competition and keep the public from benefiting from price competition. for $7.0 million. The settlement is subject to court approval. David Lilley, Chairman of the Board, President and Chief Executive Officer commented, "While we deny all charges of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do and in fact believe we would have been a victim of any conspiracy among carbon fiber manufacturers, the costs of further defending ourselves far outweighed the cost of settlement. We have eliminated any further risk related to this 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. and future periods will be relieved of the ongoing defense costs we have been incurring. Importantly, we can keep our focus on the many exciting opportunities for the near and longer term in our Specialty Materials segment." As a result of the above and including several other minor litigation matters, the Company anticipates recording a pretax charge of $8.0 million ($6.2 after tax or approximately $0.15 per diluted share) to third quarter, 2004 earnings. Cytec is scheduled to report its third quarter earnings on October 21, 2004 after the market closes and will host their third quarter earnings release conference call on October 22, 2004 at 11:00 a.m. ET Forward-Looking and Cautionary Statements Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of 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. Achieving the results described in these statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in Cytec's filings with the Securities and Exchange Commission. Corporate Profile Cytec Industries is a specialty chemicals and materials technology company with sales in 2003 of $1.5 billion. Its growth strategies are based on developing technologically advanced customer solutions for global markets including: aerospace, plastics, industrial coatings, mining, and water treatment. For more information about Cytec go to www.cytec.com or contact us at 5 Garret Mountain Plaza, West Paterson, NJ 07424. |
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