Settlement of Class Action against a BVI Corporation
On July 15, 2008, a BVI-registered company Qiao Xing Universal Telephone, Inc. announced that on the July 11 US District Judge Denise L. Cote gave the final approval of the settlement of the class action against Qiao Xing Universal Telephone and its directors and officers. Also, on July 11, 2008, the Final Approval Order and Judgment were signed and came into force.
The settlement amount was USD 2,400,000. The insurance carrier of the company’s directors and officers contributed USD 300,000 towards the settlement. Qiao Xing Universal Telephone, which is one of the largest manufacturers and distributors of telecommunications products in China, has accrued a USD 2,100,000 non-operating loss in its 2007 consolidated financial statements that is related with the settlement. However, this loss did not influence the consolidated results of the British Virgin Islands company for the year ended December 31, 2007.
According to the Chairman of the company, Mr. Wu Rui Lin, Qiao Xing Universal Telephone is satisfied that the class action was promptly settled.