NEW YORK, Oct. 1, 2008 (LAWFUEL) — The Rosen Law Firm announced
today a settlement with the chapter 7 bankruptcy trustee in connection
with a class action lawsuit pending against HiEnergy Technologies, Inc.
(Pink Sheets:HIET) in the U.S. District Court for the Central District
of California as case number CV 04-01226-VBF. Notice of the Settlement
follows.
TO: all persons who acquired any common stock of HiEnergy Technologies,
Inc. during the period from February 22, 2002 through July 8, 2004,
inclusive, and were damaged thereby (the “Class”),
YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of
Civil Procedure and an Order of the above Court dated September 26,
2008, that a hearing will be held on December 15, 2008 at 2:00 p.m. in
Courtroom 9, of the U.S. Courthouse located at 312 North Spring Street,
Los Angeles, California, to determine whether the Court should approve
a settlement between the Class and HiEnergy’s Chapter 7 Bankruptcy
trustee. The class action complaint alleges claims under the federal
securities laws against HiEnergy Technologies, Inc. (“HiEnergy”)
arising from alleged misrepresentations and omissions of material facts
during 2002 and 2003. HiEnergy is currently in chapter 7 bankruptcy
liquidation proceedings. The proposed Settlement with HiEnergy’s
chapter 7 bankruptcy trustee calls for the trustee to assign to the
lead plaintiff the bankruptcy estate’s contingent first party rights
against Navigators Insurance Company (Navigators) for that insurance
provider’s alleged wrongful refusal to provide defense and indemnity
benefits to HiEnergy under an insuring agreement with HiEnergy for
liability insurance coverage. In return for such assignment, the Class
will release HiEnergy, its officers and directors and related persons
from any liability for claims related to this action. In addition, the
Class will pay HiEnergy’s bankruptcy estate 25% of the net proceeds
obtained by prosecuting the lawsuit against Navigators to assert
HiEnergy’s rights under its liability insurance policy with Navigators.
If you wish to object to the proposed Settlement you must submit an
objection, including copies of any papers and briefs in support
thereof, in writing by filing it with the Clerk of the United States
Court, 312 N. Spring Street, Los Angeles, California 90012, on or
before November 14, 2008, and by sending copies of your objection via
first-class mail to counsel for Lead Plaintiff at: The Rosen Law Firm
PA, 350 Fifth Avenue, Suite 5508, New York, NY 10118. Copies of the
Settlement Agreement may be obtained from counsel for Lead Plaintiff at
the above address. Class Members who do not timely submit an objection
shall not be permitted to speak at the settlement hearing. Class
Members who do not appear at the hearing shall be represented by Class
Counsel.
Lead Plaintiff has not yet recovered any funds for the Class. Class
members need not file any claims or take any action unless and until a
recovery is obtained, at which time further notice and directions to
Class members shall be issued.
By Order of Hon. Valerie Baker Fairbank, United States District Judge.
