HILADELPHIA, Aug. 17, 2020 /PRNewswire/ --Lannett Company, Inc. (NYSE:LCI) today announced the Notice of Proposed Settlement and Dismissal with Prejudice of Derivative Action (the "Notice"), a copy of which is attached hereto as an Exhibit.
Lannett Company entered into a binding agreement for the settlement of a previously disclosed derivative action captioned In re Lannett Company, Inc. Derivative Litigation., Lead Case No.: 1:19-cv-0088-MN-JLH, filed in the United States District Court for the District of Delaware.
The Stipulation and Agreement of Settlement (the "Stipulation"), dated May 22, 2020, requires the Company to adopt certain corporate governance modifications, and pay, or its insurer to pay, a Fee and Expense Award to Plaintiffs' Counsel of $600,000, from which Fee and Expense Award a Service Award to each of the two Plaintiffs of $1,500 will be paid.
On August 7, 2020, the Court entered an order preliminarily approving the Stipulation and the Settlement contemplated therein and providing for the notice of the Settlement to be made to Lannett stockholders. The settlement agreement is subject to final approval by the Court, and the Court has scheduled a hearing for October 7, 2020 at 1 p.m., Eastern Time, at the United States District Court for the District of Delaware, Courtroom 2B, located at the J. Caleb Boggs Federal Building, 844 N. King Street, Wilmington, Delaware 19801, to consider approval of the settlement agreement. Stockholders have the right to object to the settlement agreement. The deadline for the submission by stockholders of an objection to the settlement agreement is fourteen calendar days prior to the hearing.
The Court has not decided in favor of Defendants or Plaintiffs in the Derivative Action. Instead, without an admission of liability on the part of any party, the parties have agreed to the Settlement to avoid the distraction, costs, and risks of further litigation, and because the Settlement, including the corporate governance reforms that the Company will adopt as part of the Settlement, provides a substantial benefit to, and is in the best interests of, Lannett and its stockholders.