My take is that the new management is clearing up all matters from the previous regime so that the company will receive maximum value when it is sold. That actually helps the shareholders in the long run. Optimistic? Maybe? I'm staying long at this point.
A substantial portion of the $11 million in cash would be funded by Diamond's insurers. With respect to the 4.45 million shares of common stock, Diamond would have the ability to privately place, or conduct a public offering of, the shares with the consent of the lead plaintiff and its counsel, prior to distribution of the Settlement Fund. In that event, the Settlement Fund would include the proceeds of the offering in lieu of the settlement shares.
If this proposed settlement is approved by the Court, a notice to the Class members will be sent with information regarding the allocation and distribution of the Settlement Fund and instructions on procedures to follow to make a claim on the Settlement Fund.
"We believe this proposed settlement eliminates the burden of further time, expense and risk related to the class action, allowing the Diamond team to move forward fully focused on expanding the reach of our leading brands and executing on our strategic and operational initiatives for growth," stated Brian J. Driscoll, Diamond's Chief Executive Officer. "We continue to strengthen our business and are pleased that our fourth quarter performance enables us to complete fiscal year 2013 in an improved financial position."