NATURAL HEALTH TRENDS CORP. (NASDAQ:NHTC) Files An 8-K Other EventsItem 8.01 Other Events.
On April 4, 2018, the United States District Court for the Central District of California (the “Federal Court”) entered an order preliminarily approving a proposed settlement of two shareholder derivative actions: (1) Kleinfeldt v. Sharng et al., No. 2:16-cv-01547 (C.D. Cal.), filed in the Federal Court; and (2) Zhou v. Sharng et al., No. BC609412, filed in the Superior Court of the State of California for the County of Los Angeles (collectively, the “Actions”). The Actions purport to assert claims on the Company’s behalf against certain current and former directors and officers of the Company. The proposed settlement requires the Company to adopt certain additional corporate governance measures and provides for an attorneys’ fees award to plaintiffs’ counsel of $250,000, which will be fully funded by the Company’s insurers. Defendants and the Company have denied and continue to deny any and all alleged wrongdoing.
The proposed settlement is subject to final approval by the Federal Court. The Notice of Shareholder Derivative Action, Proposed Settlement, and Settlement Hearing (the “Notice”) is furnished as Exhibit 99.1 to this Form 8-K. The Notice and the Stipulation of Settlement (the “Stipulation”) dated March 9, 2018 are also available on the Company’s website at http://ir.naturalhealthtrendscorp.com/. The description of the proposed settlement set forth above is qualified in its entirety by reference to the actual terms of the Stipulation.
Item 9.01 Financial Statements and Exhibits.
99.1 Notice of Proposed Settlement
This Current Report on Form 8-K may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management’s current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward looking statements include, but are not limited to, statements with respect to the proposed settlement and dismissal of the Actions. The important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to, the risk that the proposed settlement may not receive requisite approval, may not have the expected impact, including resolving the Actions, or may require more activity or expense than expected. Please refer to the risks detailed from time to time in the reports we file with the SEC, including our Annual Report on Form 10-K for the year ended December31, 2017, as well as other filings on Form 10-Q and periodic filings on Form 8-K, for additional factors that could cause actual results to differ materially from those stated or implied by such forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
NATURAL HEALTH TRENDS CORP ExhibitEX-99.1 2 ex99-1.htm EXHIBIT 99.1 Exhibit Exhibit 99.1FARUQI & FARUQI,…To view the full exhibit click
About NATURAL HEALTH TRENDS CORP. (NASDAQ:NHTC)
Natural Health Trends Corp. is a direct-selling and e-commerce company. The Company, through its subsidiaries, sells personal care, wellness and quality of life products under the NHT Global brand. The Company offers a line of NHT Global branded products in approximately five categories, including wellness, herbal, beauty, lifestyle and home. Its wellness products include Premium Noni Juice, Triotein, Cluster X2, Children’s Chewable MultiVitamin, ReStor Silver, ReStor Vital, HerBalance, FibeRich, Energin, Essential Probiotics, Omega 3 Essential Fatty Acids and Memory Burst. Its herbal products include LivaPro, Cordyceps Mycelia CS-4 and Purus. Its beauty products include Skindulgence 30-Minute Non-Surgical Facelift System, Time Restore Eye Cream and Essence, BioCell Mask, Soothe and Floraeda Hydrating Series. Its lifestyle products include Alura Lux by NHT Global, Valura, LaVie Vibrant Energy drink and Twin Slim Diet Jelly. Its home products include PurAir Air Purifier.