Orchid Pavilion Set potential to pay 1.55 million U.S. dollars for settlement of the collective action case

Absrtact: Orchid Pavilion (NYSE: LITB) announced in Friday that the company had signed a settlement agreement to end a class-action lawsuit in the United States, but that the settlement was subject to the court's initial approval and final approval. 2013

Orchid Pavilion (NYSE: LITB) announced in Friday that the company had signed a settlement agreement to end a class-action lawsuit in the United States, but that the settlement would require preliminary and final approval by the court.

August 27, 2013, the Orchid Pavilion was three shareholders to court, the case is the United States District Court in the south of New York. The court then dealt with the case combining as a class-action case. On May 1, 2014, a motion was submitted by the Orchid Pavilion to appeal to the judge to dismiss the second allegation filed in the amended lawsuit.

The two sides reached a settlement before a decision was taken on the company's motion. Under the terms of the settlement agreement, the pavilion and its insurers have agreed to pay 1.55 million of dollars in compensation to investors who purchased the company's ads shares from June 6, 2013 to August 19, 2013. As a condition of reconciliation, the plaintiff agrees to revoke all lawsuits against the Orchid Pavilion and all relevant individuals.

The plaintiff is not allowed to sue the settlement program after it has been finally approved by the U.S. court.

Agreeing to a settlement is not the same as admitting that the company or the person concerned has committed an improper or acknowledged error. Indeed, the pavilion has been and will continue to believe that all allegations against the company are unsubstantiated. The pavilion is confident that the information it discloses in its IPO and roadshow is true and accurately reflects the company's business situation. Orchid Pavilion also explained to investors the potential risks of the company's business.

Orchid Pavilion agreed to reconciliation is mainly to eliminate uncertainty, as well as the burden and expense of continuing the lawsuit. It believes it is best for customers, employees and shareholders to end the matter as soon as possible, and that closing the lawsuit will also help the company focus on developing and enhancing its business. (Lin Jingdong)