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In a filing Friday with the Securities andExchanger Commission, the Kansas City-based company (Pink Sheets: AITP) said the hearinyg will be at 2 p.m. Dec. 5 before Judge Brianj Wimes of the 16th Judicial Circuit Courft ofJackson County. would settle threr suits and require the company to make governancew changes that include reviewing all boarx charters andgovernance principles, hirinf a compliance officer and additional internal audi staff, and adopting a comprehensive code of The company admitted no wrongdoing as part of the settlement agreemen t and would pay $1.
5 million in lega fees and other Timothy Webster and formetr CFO Warren Schmidgall pleaded guilty to one counr of wire fraud each in relation to misrepresenting the company’a financial performance. Webster and Schmidgall each face as much as five yearsa in prison and as muchas $250,000 in finezs and restitution. In a separate case, AIPC said Aug. 11 that it planned to issue 903,078 shares to resolve federall securities law claims in a consolidated classx action filed inAugust 2005. AIPC’s insurerxs were to pay $11 million, and the compan y was to distribute $14 million worth of its common stock to the The settlement included no admission of wrongdoingg bythe company.
Several shareholderas had filed suits in 2005 againstthe company, alleginv that its executives and directors had “cooked the to create an illusion that the company was doing well even as salesd slumped during the low-carbohydrate diet craze. The suits were consolidated into asingls class-action suit.
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