The Settlement Hearing took place on August 10, 2020 at 11:30 a.m., and it was held via telephone conference. On the same day, the Court issued its Final Judgment approving the Settlement, which can be viewed here.
What is the lawsuit about?
The Plaintiffs in the Action filed their Verified Consolidated Stockholder Derivative Complaint (the "Consolidated Complaint") on October 28, 2019. The Consolidated Complaint alleges, inter alia, that the Individual Defendants breached their duty of loyalty to the Company because they knew or were reckless in not knowing that: (i) the Centers for Medicare & Medicaid Services had already denied Rockwell’s proposal for separate reimbursement of its drug Triferic by no later than March 27, 2018, of which Rockwell was well aware; (ii) Rockwell’s estimated reserve figures were understated; (iii) the denial of separate reimbursement of Triferic has significant implications to the Company’s reserves and future projections; (iv) the Company was experiencing known but undisclosed deficiencies in its internal controls; and (v) as a result, Rockwell’s representations concerning the effectiveness of its internal controls and certifications pursuant to the Sarbanes-Oxley Act of 2002 were improper. The Defendants deny that they violated any law and deny each and every claim alleged in the Litigation. The Defendants are entering into the Settlement to eliminate the uncertainty, burden, and expense of further protracted litigation.
What are the Settlement terms?
Under the terms of the Stipulation, Rockwell's board of directors (the "Board") agrees to implement within ninety (90) days of final settlement approval, and to maintain for a minimum period of four (4) years, the corporate governance reforms described in the Stipulation (the "Reforms"). Please note that there is no claims process and no individual stockholder has the right to be compensated as a result of the Settlement. You can read the Stipulation here.
Who is Included?
The Settlement includes:
All persons or entities who currently hold shares of stock of Rockwell Medical, Inc. ("Rockwell" or the "Company"), either of record or beneficially, excluding Defendants and any person, firm, trust, corporation or other entity related to, or affiliated with, any of the Defendants.