Hamden, CT: (Feb-01-08) A consolidated federal securities class action lawsuit was brought against EnerLume Energy Management Corp., formerly known as Host America Corporation. The suit is said to have arisen from allegations stemming from a press release issued by the company on July 12, 2005. It named the company and several of its past and present officers and directors as defendants.
The suit reached settlement after the company agreed to pay $2,450,000. Company officials claimed that $1,700,000 of the payout will be covered by insurance. The settlement is said to resolve all claims against the company and its past and present officers and directors. Additionally, the company has contributed $200,000 and has entered into an unsecured term note for the balance at a rate of 7.5% per annum which shall be due and payable in full on April 18, 2008. Separately, the Court took under advisement the settlement of the related stockholders derivative action, following which EnerLume's Board of Directors has agreed to implement certain specified therapeutic corporate governance policies and procedures and to provide for payment of $140,000 for the shareholder plaintiffs' attorney fees and costs. [
