Ronson, Steel Partners to end lengthy litigation

By Lisa Kerner

Charlotte, N.C., Oct. 16 - Ronson Corp. and investor Steel Partners II, LP are waiting for approval by the New Jersey Superior Court of a settlement designed to end four-and-a-half years of legal disputes.

The primary matter being settled is a derivative shareholder suit filed by Steel Partners, a 9.9% shareholder, claiming breach of fiduciary duty by Ronson directors, a company news release stated. The directors have "vigorously" defended the claims, which were scheduled for trial in September.

Under the proposed settlement, there is no admission of liability by any of the defendants. In addition, certain Ronson structural changes and commitments have been made in the settlement, including Ronson's commitment to allow its shareholder rights agreement ("poison pill") to expire no later than September 2011. Steel Partners agreed to a standstill, refraining from proxy activities and other matters for a period of time.

Representatives of Ronson and Steel Partners expressed satisfaction with the resolution.

Ronson is a consumer products company based in Somerset, N.J.

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