Accentia Biopharmaceuticals, Inc.
Accentia Biopharmaceuticals, Inc. Securities Settlement
The lawsuit was settled for $1.25 million in cash. The following is a summary of the proceedings in this lawsuit: ‘The Action ,was commenced on July 26, 2013 and alleged that the Defendants violated the federal securities laws, On December 4, 2013, the Court issued an Order appointing Lead Plaintiffs, and approving their selection of Shapiro Haber & Urmy LLP as lead counsel, and Liggio Benrubi as liaison counsel, to represent the putative class. Lead Plaintiffs filed the operative Consolidated Amended Complaint on January 2I,2014 (the ‘Complaint’). The Complaint generally alleges, among other things, that the Defendants violated Sections 10(b) and 20(a) of the Securities ExchangeAct of 1934 and Rule 10b-5 promulgated thereunderby making alleged misstatements and omissions during the Class Period regarding the prospects for regulatory approval by the FDA of BiovaxlD, a therapeutic cancer vaccine being developed by Biovest (which, during the relevant time period, was majority-owned by Accentia). The Complaint further alleges that Lead Plaintiffs and other Settlement Class Members purchased or acquired Accentia and Biovest common stock during the Class Period at artificially inflated prices and were damaged thereby. On March 7, 2014, Defendants filed motions to dismiss the Complaint, which Lead Plaintiffs opposed. In May 2014, while Defendants’ motions to dismiss were pending, Lead Plaintiffs and Defendants engaged in a mediation with the assistance of a well-respected and highly experienced mediator. Following lengthy arm’s-length negotiations overseen by the mediator, Defendants and Lead Plaintiffs reached an agreement in principle to settle the claims against Defendants (the ‘Settlement’), Before agreeing to the Settlement, Lead Plaintiffs’ Counsel had conducted an extensive investigation into the facts underlying the claims alleged in the Complaint. Lead Plaintiffs’ Counsel also consulted with an expert on valuation and damages issues and researched the applicable law with respect to the claims and the potential defenses. Thus, at the time the Settlement in principle was reached, Lead Plaintiffs’ Counsel had a thorough understanding of the strengths and weaknesses of the Settling Parties’ positions. On October 8,2014, the Court entered the Order Granting Preliminary Approval of Class Action Settlement, Approving Form and Manner of Notice, and Setting Date for Hearing on Final Approval of Settlement, which preliminarily approved the Settlement, authorized that this Notice be sent to potential Settlement Class Members, and scheduled the Settlement Hearing to consider whether to grant final approval to the Settlement.’