Sport-Haley, Inc. has announced that on April 29, 2004, the United States District Court for the District of Colorado entered a Final Order and Judgment approving the settlement of the class action that had been pending since October 2001 against the Company, two officers and directors and one former officer and director.
The Defendants settled the class action while continuing to deny any liability in connection with the asserted claims. A settlement in principle was reached between the parties during a settlement conference in November 2003. The Court granted preliminary approval of the settlement on January 30, 2004, pursuant to which approval, notice of the class action and proposed settlement were distributed to applicable shareholders. The Court conducted a hearing on the proposed settlement on April 23, 2004. No members of the class opted out of the class or objected to the proposed settlement. In accordance with the settlement agreement, the Defendants will pay to the class a total of $1,000,000, from which will be deducted certain administrative costs and awards made to the named Plaintiffs and to Plaintiff's counsel for attorneys' fees and costs. The Company expects that the settlement amount will be derived from proceeds of the Defendants' liability insurance coverage.
“We're pleased that the class action has finally been settled in its entirety,” stated Kevin Tomlinson, President and Chief Executive Officer. “We believe that the negotiated settlement was in the best interests of all the parties concerned. Having this issue settled relieves a burden on the Company's management and allows us to concentrate on moving forward with our strategic plans.”
