CARLSBAD, Calif.--(BUSINESS WIRE)--Jan. 16, 2007--Orange 21 Inc.
(NASDAQ:ORNG) today announced that it has reached an agreement to
settle the consolidated securities class action currently pending in
the United States District Court for the Southern District of
California against the Company and certain of its current and former
officers and directors. The settlement will resolve litigation that
has been pending since March 2005. If the settlement is approved by
the Court, following notice to the class, $1.4 million will be paid to
the class of plaintiffs and for plaintiffs' attorneys' fees from
proceeds of Orange 21's directors' and officers' insurance. No amounts
will be paid by the Company.
Orange 21 also announced that it has reached an agreement to
settle the consolidated derivative action that is pending in the
Superior Court of the State of California, County of San Diego against
certain of the Company's current and former officers and directors,
and against one of the Company's stockholders, No Fear, Inc. This
action has been pending since December 2005. Under the settlement
agreement, No Fear and the insurer for the officer and director
defendants have agreed to pay, subject to Court approval, plaintiffs'
attorneys' fees. In addition, the Company has agreed to continue
adherence to a set of corporate governance guidelines. The settlement
is subject to Court approval. No amounts will be paid by the Company.
About Orange 21 Inc.
Orange 21 develops brands that produce premium products for the
action sport and youth lifestyle markets. Orange 21's primary brand,
Spy Optic(TM), manufactures sunglasses and goggles targeted towards
the action sports and youth lifestyle markets.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements relate to future events and are made based on the best
estimates and assumptions of management at the time the statement is
made. In some cases, you can identify forward-looking statements by
terminology such as "may," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential" or "continue," the
negative of such terms or other comparable terminology. In the present
case, forward-looking statements include statements about the court's
approval of the settlement agreements. These statements are only
predictions. Actual events or results may differ materially from these
forward-looking statements. Risks that affect the outcome of such
statements include, but are not limited to the risk that either or
both of the courts with jurisdiction over the litigation determine not
to approve the respective settlement agreements. None of the Company
or any other person assumes responsibility for the accuracy or
completeness of such forward-looking statements. The Company
undertakes no obligation to update any of the forward-looking
CONTACT: Orange 21 Inc.
Jerry Collazo, 760-804-8420
SOURCE: Orange 21 Inc.