Orange 21 Inc. reported that the United States District Court for the Southern District of California issued an order approving the company's agreement to settle the consolidated securities class action that was pending in the Court against certain of the company's current and former officers and directors and dismissing the action with prejudice. This action has been pending since March 2005. Under the settlement, $1.4 million will be paid to the class of plaintiffs and for plaintiffs' attorneys' fees from proceeds of the company's directors' and officers' insurance. No amounts will be paid by the company.
Mark Simo, Orange 21's CEO, commented on the dismissal, “We are very happy to have this distraction behind us. With this distraction removed we look forward to contributing even more time and attention to our current business initiatives.”
