Avid Bioservices Inc (CDMO)

[Protector]

bfiest, I think the passed class action is one of the reasons of the change of the bylaw.

Directors were falsely accused of releasing results while knowing there had been a sabotage going on at our CRO, CSM in Fargo, and so they knew they would have to warn the shareholders at a later point after the PPS already appreciated. Furthermore they were also falsely accused of having done it in their own advantage.

So I think that what the company does here is protecting its directors and management against such wild accusations. The law firms will have costed money and the CSM settlement goes to PPHM not to the 4 Directors involved.

Personally I also see it as an extension of not being able to dislocate a director from its position in other ways then by voting. By voting the door was locked already. If someone would want to create a hole in the BoD and so forcing PPHM into another BoD member that would not be 'poison pill happy' then this is now impossible via that way too.

They get attack, falsely attacked, the defend themselves and close the door of the attack they survived. I would do the same in this case because they where never guilty as charged.