3 parts of the lawsuit there are the main points.
The proposed settlement contemplates the implementation by the Company of certain corporate reforms within 60 days of final approval. The Company currently anticipates that plaintiff's counsel will file a motion seeking an award of attorney's fees.
{ we'll have to see exactly what those reforms will be}
The lawsuit alleged breach of fiduciary duty and other claims premised on the same events that were the subject of a purported class action filed in the Southern District of New York on April 23, 2014.
{ yes alleged breach of fiduciary duty}
The Minute Order
further provides that the Court will hold a hearing (“Final Hearing”), on May 15, 2023 at 2:30
p.m. before The Honorable Richard F. Boulware, II in Courtroom 7C of the United States District
Court for the District of Nevada, 333 S Las Vegas Blvd, Las Vegas, NV 89101, pursuant to Federal
Rule of Civil Procedure 23.1, to among other things: (i) determine whether the proposed
Settlement is fair, reasonable and adequate and in the best interests of CV Sciences and its
shareholders; (ii) consider any objections to the Settlement submitted in accordance with the
Notice; (iii) determine whether a Final Judgment substantially in the form attached as Exhibit C to
the Stipulation should be entered dismissing all claims in the Derivative Action with prejudice and
releasing the Released Claims against the Released Persons; (iv) consider the payment to
Plaintiff’s Counsel of attorneys’ fees and for the reimbursement of expenses as requested in the
Fee and Expense Award in an amount to be determined by the Court not to exceed $650,000; (v)
consider the payment to Plaintiff of a Service Award in an amount to be determined by the Court
not to exceed $3,500, which will be funded from the Fee and Expense Award; and (vi) consider
any other matters that may properly be brought before the Court in connection with the Settlement.
{Fee and Expense Award in an amount to be determined by the Court not to exceed $650,000}
If your a shareholder, I don't know how anybody would call this a win, especially for the shareholders.
Bearish
