“and all the frivolous financial lawsuits are getting thrown out.”
You need to reread the most recent 10Q, page 41. Pay particular attention to the SLC’s recommendations as they didn’t find the lawsuit “frivolous”.
“On April 24, 2020, certain stockholders of the Company, including two former directors and a company controlled by a former director filed a derivative stockholder complaint in the Court of Chancery of the State of Delaware (the “Court”), alleging claims for breach of fiduciary duty, bad faith, waste and unjust enrichment against the Company’s CEO, current and former CFOs, CMO, and current and former members of the Company’s board of directors in connection with certain equity grant awards to those individuals in December 2019 and January 2020. The Company was named as a nominal defendant. The complaint seeks on behalf of the Company, among other things, the rescission of the awards, a declaration that the named directors breached their fiduciary duty to the Company, and an unspecified amount of damages. The Company appointed a special litigation committee (“SLC”), consisting of two independent directors not named in the complaint, to investigate the allegations in the complaint. The litigation was stayed during their investigation.
The SLC concluded its investigation in November 2020. On December 15, 2020, the SLC agreed on the terms of a proposed settlement with the named defendants that would, if approved by the Court and performed, conclude the litigation. The terms of the proposed settlement were memorialized in a memorandum of understanding filed with the Court on December 18, 2020. The SLC expects to file a stipulation of settlement and supporting papers with the Court on or before January 19, 2021, after which the Court will schedule a hearing to consider the fairness of the proposed settlement and any objections thereto. We cannot at this time predict when the settlement hearing will be held, when the Court will render a decision or the outcome of the decision.”
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