TSR, Inc. Announces Final Court Order Approving Settlement in the Stockholder Derivative Action

Rhea-AI Summary

TSR, Inc. (Nasdaq: TSRI) announced that the Supreme Court of New York has approved a settlement in the stockholder class action case, Susan Paskowitz v. James J. Hill et al. The settlement originated from a lawsuit filed by stockholder Susan Paskowitz on October 16, 2018. The Court's final order, issued on May 24, 2021, fully approves the settlement and dismisses the case with prejudice. The payment for the settlement is expected to be covered by the Company's insurance provider.

Positive

• Court approved settlement of stockholder action, reducing potential legal liabilities.
• Settlement payment will be covered by insurance, limiting financial impact on the Company.

Negative

• None.

TSR, Inc. (Nasdaq: TSRI) (the “Company”), a provider of information technology consulting and recruiting services, today announced that on May 24, 2021, the Supreme Court of the State of New York, Queens County issued a final order and judgment approving the settlement in the stockholder class and derivative action captioned Susan Paskowitz v. James J. Hill et al., No. 715541/2018, filed by Susan Paskowitz, a stockholder of the Company, on October 16, 2018 (the “Stockholder Action”).

On December 16, 2019, the Company entered into a Stipulation and Agreement of Settlement with Susan Paskowitz providing for the settlement of the Stockholder Action (the “Stipulation”). On May 21, 2020, the Court entered an order preliminarily approving the settlement.

Pursuant to the terms of the final order, the Court fully and finally approved the settlement set forth in the Stipulation and dismissed the Stockholder Action with prejudice. The settlement payment is expected to be paid by the Company’s insurance provider under its insurance policy.

Forward-Looking Statements

This press release and any statements of employees, representatives and officers of the Company related thereto contain, or may contain, among other things, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential” or similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future presentations or otherwise, except as required by applicable law.

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FAQ

What was the outcome of the TSR Inc. stockholder action lawsuit?

The Supreme Court of New York approved the settlement in the case Susan Paskowitz v. James J. Hill et al., dismissing it with prejudice.

When was the settlement for the TSR Inc. stockholder action approved?

The settlement was approved on May 24, 2021.

What is the case number for the TSR Inc. stockholder action?

The case number is No. 715541/2018.

Who filed the stockholder action against TSR Inc.?

The stockholder action was filed by Susan Paskowitz.

How will the settlement payment for TSR Inc. be handled?

The settlement payment is expected to be paid by the Company's insurance provider.