Swisher Hygiene Agrees to Pay $5.3 Million in Its Final Settlement Before Liquidation
Swisher Hygiene Inc. (the “Company” or “Swisher”) today announced that it has settled the last remaining claim against the Company now permitting the Company to proceed with its final dissolution and liquidation.
On August 6, 2021, the Court of Chancery of the State of Delaware (the “Delaware Court”) approved a settlement agreement dated August 3, 2021 (the “Settlement Agreement”), between Swisher Hygiene Inc., a Delaware corporation in dissolution, and Honeycrest Holdings, Ltd. and its affiliates (collectively, “Honeycrest”). The Settlement Agreement settles all claims, demands and causes of action of any kind or nature whatsoever, whether known or unknown, that Honeycrest has made or could have made previously, now, or hereafter against the Company, its stockholders, or its affiliates, arising from a 1990 license agreement entered into between Honeycrest and two frozen desert licensors that were subsequently acquired as a subsidiary by Coolbrands International Inc., Swisher’s predecessor.
The Settlement Agreement resolves over 23 years of litigation represented by three New York cases, Honeycrest Holdings, Ltd. v. Integrated Brands, Inc., New York Supreme Court, Queens County (Index No. 5204/1998) (“Honeycrest I”); Honeycrest Holdings, Ltd. v. Swisher Hygiene Inc., et al., New York Supreme Court, Queens County (Index No. 29666/01, renumbered as an e-filed case under Index No. 705039/2020) (“Honeycrest II”); and Honeycrest Holdings, Ltd. v. Swisher Hygiene Inc., Integrated Brands, Inc., 7624026 Canada Inc., and John and Jane Does #1 through #99, New York Supreme Court, Queens County (Index No. 706482/2017) (“Honeycrest III”). The Settlement Agreement also terminates all appeals, including Honeycrest’s 2018 appeal of the dismissal of the Honeycrest III complaint, and Honeycrest’s 2021 appeal of the denial of Honeycrest’s motion to strike Swisher’s Answer and Counterclaim in Honeycrest II, both of which were pending at the time of the Settlement Agreement.
