Flux Power Says Court Issues Prelim Approval For Settlement Of Claims Asserted Derivatively On Behalf Of Co Against Current, Former Officers

 

On December 8, 2025, the United States District Court for the Southern District of California (the "Court") issued an order (the "Preliminary Order") providing for preliminary approval of the proposed settlement of the claims asserted derivatively on behalf of Flux Power Holdings, Inc. (the "the Company") against current and former officers and directors of the Company in the previously disclosed stockholder derivative action entitled Pearl v. Dutt, et al. (Case No. 3:25-cv-00373-JO-DDL) pending before the Court in accordance with the Stipulation and Agreement of Settlement, dated August 12, 2025 (the "Stipulation"). The Stipulation calls for the Company to implement and maintain certain corporate governance reforms and enhancements and for the payment of attorneys' fees and reimbursement of expenses for plaintiff's counsel and a service award for plaintiff, in the aggregate amount of $425,000. The Company expects the Company's liability insurers to directly fund approximately $187,000 of the agreed upon attorney's fees. The Preliminary Order set a final settlement approval hearing for April 2, 2026.