Styles on Video Settles Shareholder Lawsuit

Styles on Video, a Canoga Park maker of computer imaging systems used to preview hairstyles, said it has settled a class-action shareholder lawsuit filed against the company in December, as well as a recent shareholders’ derivative suit naming the directors and certain officers of the company.

Styles said it has agreed to deliver to the plaintiffs class warrants to purchase 750,000 shares of the company’s common stock, and a promissory note in the principal amount of $250,000, payable in three installments over 18 months. The exercise price of the warrants will be determined later, Styles said. Also as part of the settlement, Styles’ director and officer liability insurance carriers have agreed to pay $2.25 million.

In the derivative case, the company’s former chairman and chief executive, Guy de Vreese, agreed to surrender 250,000 shares he owns of the company’s common stock and cancel stock options he holds. The surrendered shares will be distributed to the class plaintiffs.

The settlement is subject to notice of class members, the negotiation of settlement documents and approval by the district court in which the cases were filed. Company officials were not available for comment.