Yesterday, the rarely traded Remec, Inc. (OTC:REMC) stock suddenly soared 7.34% on a volume that has not been seen since the beginning of January.
A possible final judgment of the District Court on the lawsuit filed against the company and certain former officers for violation of federal securities laws inspired investors and REMC stock was revitalized.
As opposed to the huge REMC stock stir at the beginning of the year, when more than four million shares changing hands caused the drop down, this time the huge volume was generated by buyers.
REMC closed the session at $0.95 on more than 2.6 million share volume.
On Monday, the company made an SEC filing containing an update on the above mentioned lawsuit.
In September 2004, three lawsuits were filed against REMC and certain of its former officers, consolidated into a single case after that. The case was related to the accusation that between September 8, 2003 and September 8, 2004 false and misleading statements were made by the company. Further, REMC was accused of not disclosing material information about its financial condition, operations and future business prospects, all in violation of the federal securities laws.[BANNER]
After years of disputes, REMC finally announced that this Monday the parties involved in the lawsuit have entered into an agreement to request dismissal of the Appeal and Cross Appeal, to exchange releases and to accept the final judgment of the District Court.
On July 21, 2005, a Plan of Complete Liquidation and Dissolution of Remec was approved. At present, the company continues existing until its final dissolution, which is subject to the payment of the expenses incurred during the implementation of the liquidation plan and the payment of the company’s known liabilities.
