LightInTheBox Settles Class Action Lawsuit - Quick Facts

(RTTNews) - LightInTheBox Holding Co., Ltd. (LITB), an online retail company that delivers products directly to consumers, Friday said it has entered into an agreement to settle all claims in a U.S. securities class action lawsuit. The settlement remains subject to preliminary and final court approval.

On August 27, 2013, the company was named as a defendant in the first of three putative shareholder class action lawsuits filed in the United States District Court for the Southern District of New York. These three actions were consolidated.

On May 1, the company filed a motion to dismiss the second amended consolidated complaint for failure to state a claim as a matter of law.

The parties have entered into the settlement before a decision on the company's motion to dismiss.

According to the settlement, the company and its insurers have agreed to contribute $1.55 million to a settlement fund payable to certain purchasers of the American depositary shares between June 6, 2013 and August 19, 2013.

In return, the lead plaintiff has agreed to dismiss all claims against the company and all of the individual defendants.

Following final approval of the settlement by the Court, the case will not be allowed to be refiled.

LightInTheBox noted that the settlement is not an admission of wrongdoing or acceptance of fault by the company or any of the individual defendants.