FARMINGDALE, NY – Cemtrex will pay $625,000 and modify certain governance practices to settle a class-action suit filed by a group of shareholders.

Under the class action settlement, the company denies it has engaged in any wrongdoing or had liability.

Under the derivative litigation settlement, the firm’s insurer will pay $100,000 to the plaintiffs’ counsel.

Like the class action settlement, the derivative litigation settlement will resolve all claims that were or could have been asserted in the litigation, and the company and the directors and officers of the company named as defendants continue to deny any liability or wrongdoing in connection with the allegations contained in the lawsuit.

“We are pleased to be putting the uncertainty around these lawsuits behind us, which we believe is beneficial to the company and its shareholders,” said Saagar Govil, Cemtrex’s CEO. “After carefully evaluating the merits of trying the case versus settling it, we chose the latter as any continued litigation of the actions would be protracted, burdensome, and expensive for the company. This settlement concludes this matter expeditiously with no additional costs to the company and further avoids interference on operations.”

The settlements are subject to several conditions, including formal settlement documentation and court approval.

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