CV Sciences Inc (CVSI)

[GE_Jim]

Wonder how much cvsi will have to pay in that settlement.
The Derivative Action alleged that the Defendants willfully or recklessly made and/or
caused the Company to make false or misleading representations regarding: (1) the value of the
PhytoSphere acquisition; and (2) CV Sciences’ financial position and results of operations. As a
result of the foregoing, the Plaintiff alleged that Defendants had breached their fiduciary duties to
the Company and to its shareholders. Defendants deny each and every claim and contention
alleged by Plaintiff and also expressly deny all charges of wrongdoing or liability arising out of
the allegations in the Actions
After the Court’s denial of Defendants’ Motion to Dismiss in substantial part and discovery
proceedings undertaken, the Parties engaged in extensive settlement negotiations. The Parties
memorialized their agreement as to the substantive terms of the proposed settlement in a
Settlement Term Sheet on January 13, 2022.
In recognition of the benefits achieved on behalf of CV Sciences in the Derivative Action,
the Parties shall attempt to negotiate in good faith and with the assistance of a mediator if necessary
an agreed amount of attorneys’ fees and expenses (the “Fee and Expense Award”) to be proposed
to the Court prior to the Final Hearing as payment to Plaintiff’s Counsel for the benefits achieved
on behalf of CV Sciences. If the Parties are unable to reach agreement, Plaintiff may make a
motion to the Court seeking an award of attorneys’ fees and expenses for the benefits achieved on
behalf of CV Sciences in the Derivative Action. Defendants reserve the right to oppose any such
motion.