Attached files
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8-K - FORM 8-K - CCA INDUSTRIES INC | c01907e8vk.htm |
EX-1 - EXHIBIT 1 - CCA INDUSTRIES INC | c01907exv1.htm |
EX-2 - EXHIBIT 2 - CCA INDUSTRIES INC | c01907exv2.htm |
Exhibit 3
Company Contacts:
Ira W. Berman, Chairman
800-524-2720
Ira W. Berman, Chairman
800-524-2720
FOR IMMEDIATE RELEASE |
CCA INDUSTRIES, INC. ANNOUNCES TWENTY-FIFTH CONSECUTIVE DIVIDEND AND PRELIMINARY SETTLEMENT OF
A CLASS ACTION LAWSUIT.
East Rutherford, NJ May 28, 2010: CCA Industries, Inc. (NYSE Amex: CAW), announced today that
its Board of Directors has approved a dividend of $0.07 per share to all shareholders of record as
of August 2, 2010 and payable on September 2, 2010. This will be the Companys 25th consecutive
dividend.
The Company also entered into a preliminary settlement of the class action lawsuit, Denise Wally
vs. CCA Industries, Inc., in the Superior Court of Los Angeles, California, regarding the
advertising and packaging of the Companys dietary supplement product. The settlement is subject
to a Final Order of Settlement approved by the Court. The settlement provides for a one-time
payment of $2.5 million into a common fund to be disbursed as provided for in the Final Order of
Settlement.
The Company denies all of the allegations of any wrongdoing and liability in regard to its
advertising, however the Board of Directors believed that in the light of the costs, risks and the
substantial disruption of its business by the litigation, that it was in the best interests of the
Company to settle the case. The settlement will have no effect on the operations of the Company,
stated Dunnan Edell, President. The $2.5 million payment will be taken as a charge against the
second quarter 2010 earnings. This would be a one-time expense, and fortunately, due to the
Companys strong financial position, the settlement should have no substantial effect on the
Companys business going forward.
The Company also settled a dispute with its insurance carrier regarding its advertising insurance.
The settlement calls for the insurance carrier to pay 50% of all legal fees and related costs
associated with the Wally litigation, up to a maximum of $475,000.
CCA Industries Inc. manufactures and markets health and beauty aids, each under its individual
brand name. The products include, principally, Plus+White toothpastes and teeth whiteners,
Mega-T Green Tea diet supplements, Mega-T Green Tea gum and mint products, Bikini Zone,
medicated topical and shave gels, Nutra Nail nail care treatments, Scar Zone scar treatment
products, Sudden Change anti-aging skin care products, Parfume de Vanille fragrances, Solar
Sense sun protection products, Hair Off hair removal and depilatory products, Wash N Curl
shampoos and conditioners and Pain Bust RII, an analgesic product.
Statements contained in the news release that are not historical facts are forward looking
statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties are detailed in the Companys
filings with the Securities and Exchange Commission.