Court orders settlement of Nanophase lawsuit

Aug. 8, 2003 — A U.S. District Court has ordered preliminary approval of a $2.5 million settlement of a class action lawsuit filed against Nanophase Technologies Corp., according to a news release.

The decision of the U.S. District Court for the Northern District of Illinois July 31 resolves all claims related to a shareholder lawsuit, which alleged that Nanophase improperly booked revenue and misled shareholders concerning a deal with U.K.-based Celox Ltd. for the sale of a nanocrystalline environmental catalyst, causing Nanophase’s stock price to rise.

Nanophase said in the release that it expects the company’s liability insurance will pay for the settlement, which will be finalized Nov. 12. Nanophase’s stock, traded on Nasdaq, closed Thursday at 3.89, down from 4.67 Wednesday.


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