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  • tex7779 tex7779 Jan 7, 2003 6:38 PM Flag

    Kanders bought options in CLRS

    " The lawsuit " has been consolidated by the court some time ago into one. In a nutshell, as I recall, it is a law suit filed by many former and perhaps still current shareholders, whereby it is alleged that CLRS management misled the investors, sold a lot of stock when it was much higher and then dropped a bomb on everyone during the Q3 conference call in 2000. During that call, management announce a radical change in business plans etc.

    I must stress, the above is only my read of the whole mess in a gist. Was Steve Jeffery and his merry men guilty ? I do not know. On the other hand we have all seen a plethora of law suits by unhappy shareholders for virtually any company in recent years, particularly those who were in the arena, like Clarus.

    My sources tell me that Kanders and co. with the D&O ( Director's and Officer's ) insurance policy that Clarus had, settled with the other party. The amount of settlement is not known to me, but what I was able to get is that the settlement amount was within the insurance coverage limit, which to my knowledge was about $ 15 million.

    Regardless, that issue ought to come out when Kanders announces the Q4-2002 earnings.

    As always, JMHO.


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    • Tex

      Thanks for the information on the lawsuit. I looked at the Form 4 filing and I believe the
      options that Kanders reported were granted by
      the board of Clarus. The 5 year vesting and 10
      year expiration are consistent with option
      grants from a company stock option plan.
      If this is correct then Kanders did not pay for
      the options. IMO