NEW YORK, May 7 /PRNewswire-FirstCall/ -- Lazare Kaplan
International Inc. (Amex: LKI) (the "Company") announced today that
on May 5, 2010, Robert A. Del Genio informed the Company of his
decision to resign as a member of its Board of Directors, effective
as of May 5, 2010. Mr. Del Genio's decision to resign was not due to a
disagreement with the Company on any matter relating to the
Company's operations, policies or practices.
Mr. Del Genio resigned due to
potential conflicts of interest relating to a lawsuit recently
brought by the Company against insurance companies that are
represented by, or that have affiliates that are represented by,
Conway Del Genio, Gries & Co.,
LLC, in matters unrelated to the Company. Mr. Del Genio is a member and co-founder of
Conway Del Genio, Gries & Co.,
LLC.
The Board of Directors of the Company has not as of yet
identified a replacement to fill the vacancy on the Board created
by Mr. Del Genio's resignation.
Additionally, as previously announced by the Company relating to
an Agreement for Interim Payment entered into between the Company
and certain insurers of the Company and underwriters (collectively,
the "Underwriters"), the Underwriters committed to reach a decision
by May 3, 2010 as to whether the
Company has coverage under certain of its insurance policies with
respect to claims made by it and, if so, the amount of payment for
the same.
The Company has now been informed by the Underwriters that they
(a) concluded that the Company has not met its burden to show that
the Underwriters are obligated at this time to make a payment under
the insurance policies and (b) are at present denying any
obligation to make any payment to the Company. The Company is
permitted to submit additional evidence to support its claims which
will then be considered by the Underwriters.
Such determination by the Underwriters does not effect or
otherwise require the return of the interim payment of $28 million and the Company's "sue and labor"
costs and expenses, previously paid to the Company pursuant to the
Agreement.
Accordingly, at this time, the Company cannot resolve the
material uncertainties that prevent it from completing the audit of
its 2009 fiscal year financial statements or the unaudited
financial statements for the subsequent interim periods.
Lazare Kaplan International Inc. sells its diamonds and jewelry
products through a worldwide distribution network. The
Company is noted for its ideal cut diamonds, which it markets
internationally under the brand name, Lazare Diamonds®.
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known
and unknown risks and uncertainties which may cause the Company's
actual results in future periods to differ materially from
forecasted results. Those risks include the ability to
resolve the material uncertainties discussed above, a softening of
retailer or consumer acceptance of, or demand for, the Company's
products, pricing pressures, adequate supply of rough diamonds,
liquidity, and other competitive factors. The information contained
in this press release is accurate only as of the date issued.
Investors should not assume that the statements made in these
documents remain operative at a later time. Lazare Kaplan
International Inc. undertakes no obligation to update any
information contained in this news release.
SOURCE Lazare Kaplan International Inc.