LONG ISLAND CITY, NY –  Cemtrex said a federal court has approved previously announced settlements in a securities class action lawsuit and related shareholder derivative litigation. The EMS/ODM will pay a series of fines and make certain changes to its governance as part of the settlements.

Cemtrex’s insurer will pay $625,000 to the class of plaintiffs to resolve all claims related to class action suit. The suit represented shareholders who accused the company of paying third parties to artificially pump up the stock price.

Under the derivative litigation settlement, the company must implement certain corporate governance changes and modify certain governance practices, and the company’s insurer will pay $100,000 to settle legal bills.

Cemtrex said that, under the terms of both deals, it denied any wrongdoing. “We are pleased to finally have the court approval of our settlement and clear this cloud that has been hanging over us for the past two years,” said Saagar Govil, CEO, Cemtrex. “This settlement has concluded these lawsuits expeditiously and further avoids interference on operations, which we believe is beneficial to the company and its shareholders.”

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