Applied Energetics reaches settlement over 2005 preferreds placement

Agreement met with NewOak Capital Markets, formerly J. Giordano

By Jennifer Chiou

New York, Feb. 10 - Applied Energetics, Inc. reached an agreement with NewOak Capital Markets LLC, formerly known as J. Giordano Securities LLC, the agent for its October 2005 private placement of preferred stock, according to an 8-K filed with the Securities and Exchange Commission.

As reported, the agent filed a lawsuit against the company on Dec. 14 alleging company misrepresentations about the development of its counter-IED products prior to the placement.

The lawsuit against the company and two former officers and directors was settled on Thursday in the U.S. District Court for the Southern District of New York.

As previously noted, Applied Energetics had settled class action and derivative lawsuits over this issue, and NewOak had opted out of the class action.

When the suit was announced, NewOak was seeking monetary damages of more than $53.76 million, plus attorney's fees and costs.

Applied Energetics is a Tucson, Ariz.-based developer and manufacturer of applied energy systems, primarily for military applications.

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