SOURCE: Concord Camera Corp.

May 19, 2008 16:12 ET

Concord Camera Granted Preliminary Approval for Settlement of Shareholder Derivative Litigation

HOLLYWOOD, FL--(Marketwire - May 19, 2008) - Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today announced that it has been granted preliminary approval of a settlement of a stockholder derivative lawsuit against certain of Concord's past and present directors and officers, which was pending in the United States District Court for the Southern District of Florida as Neiman v. Lambert, et al., Case No. 05-60574-CIV-Lenard-Garber.

The settlement resolves claims purportedly filed on behalf of Concord by a Company stockholder alleging that the named individual Concord defendants breached their fiduciary duties to the Company. The lawsuit claimed that between August 14, 2003 and May 10, 2004, the defendants breached their fiduciary duties and damaged Concord by disseminating materially false and misleading information about the valuation of Concord's inventory, its estimates for sales returns and allowances, the realizability of its deferred tax assets and the Company's financial results and prospects. The lawsuit alleged that as a result of these alleged breaches of fiduciary duties, Concord was damaged.

Since the filing date of the complaint and prior to the date of the Settlement Agreement in the derivative action, the Company, in response to material weaknesses and deficiencies identified by management and auditors, has implemented corrective actions to address and remediate the material weaknesses and deficiencies, as reported in the Company's public filings.

In agreeing to the proposed settlement, counsel for the parties have considered the remedial efforts instituted by the Company which address and correct some of the internal control problems at Concord as alleged by Plaintiff in the Derivative Action. The settlement agreement provides for payment of $100,000 for the shareholder plaintiff's attorney fees and costs. The Settlement Agreement does not require Concord or the individual defendants to make any other payments.

The Company and the named individual Concord defendants have denied the claims in the derivative litigation and have vigorously contested those claims. As part of the settlement, the settling defendants continue to deny any liability or wrongdoing.

The settlement remains subject to additional requirements, including notice to Concord stockholders as of March 31, 2008, and final approval by the Federal Court. A hearing on final approval of the settlement is scheduled for June 16, 2008. There is no assurance that the Court will grant the requisite approval, or that the settlement will become final.

The information in this press release is a summary of the proposed settlement. A Notice of Proposed Settlement of Derivative Action, Settlement Fairness Hearing and Right to Appear ("Notice of Proposed Settlement"), containing additional information about the settlement and the rights of Concord stockholders, will be mailed by May 22, 2008. In addition, the Notice of Proposed Settlement and a copy of the Stipulation and Agreement of Settlement ("Stipulation") will be posted on Concord's website at www.concord-camera.com. The Stipulation and related documents are also available to the public at the Clerk's Office, United States District Court for the Southern District of Florida, 301 North Miami Avenue, Miami, Florida 33128. The documents may be obtained on-line through the United States Court's PACER System, http://pacer.psc.uscourts.gov. The case caption is Neiman v. Lambert, et al., Case No. 05-60574-CIV-Lenard-Garber.

Concord Camera Corp., through its subsidiaries, is a global provider of easy-to-use single-use and traditional film cameras. Concord currently markets and sells its cameras on a private-label basis and under the POLAROID and POLAROID FUNSHOOTER brands through in-house sales and marketing personnel and independent sales representatives. The POLAROID trademark is owned by Polaroid Corporation and is used by Concord under license from Polaroid. The FUNSHOOTER trademark is a registered trademark of Concord Camera Corp. in the United States and other countries. Learn more about Concord Camera Corp. at www.concord-camera.com.

Except for the historical information contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the Company's business and prospects, including the risks discussed under "Risk Factors" and disclosures in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2007 and subsequently filed reports. Such forward-looking statements include, without limitation, statements regarding the approval of the settlement by the court, the hearing date for the court's final approval of the settlement, the mailing date of the Notice of Proposed Settlement and the posting of the Notice of Proposed Settlement and the Stipulation on the Company's website. Actual results could differ materially from these forward-looking statements. Factors that could result in these forward-looking statements being inaccurate include, among other things, the court's rescheduling of the hearing date for final approval of the settlement and other factors and uncertainties that affect the Company. Any forward-looking statements contained in this press release represent the Company's estimates only as of the date hereof, or as of such earlier dates as are indicated, and should not be relied upon as representing its estimates as of any subsequent date. Although the Company may elect to update forward-looking statements in the future, it disclaims any intent or obligation to do so, even if its estimates change.

Contact Information

  • Contact:

    Concord Camera Corp.
    Blaine Robinson
    Vice President - Finance and Treasurer
    (954) 331-4238

    CLAIMS ADMINISTRATOR'S CONTACT INFO:
    Adminstar Services Group LLC
    P.O. Box 56798
    Jacksonville, FL 32241-6798
    (904) 807-3000