NutraCea settles class action

- Last updated on GMT

Related tags: Class action, Plaintiff

Rice bran supplier NutraCea has settled a class action lawsuit which involves over $1.5m in payment to plaintiffs.

The suit, filed in February last year, sought damages against NutraCea and certain former officers and directors for alleged federal and Arizona state securities law violations.

The settlement, which will be paid out by NutraCea’s insurance company, involves a fund $1,500,000 to pay claims submitted by class members. The settlement fund will also contain 50 percent of any funds remaining in the insurance policy after payment of all valid claims (including legal fees), as long as there is $150,000 or more of funds remaining in the policy.

This agreement, said the firm, provides” full and complete settlement for all claims against NutraCea and the other defendants under the class action suit”.

"The resolution of the suit will allow management to focus more completely on successfully exiting chapter 11, growing our company and restoring value for our shareholders,"​ said W. John Short, the firm’s chairman and CEO.

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