NEW YORK, Oct. 15, 2008 (GLOBE NEWSWIRE) -- The Rosen Law Firm today announced the third notice of 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
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca