Sequenom Inc announced the entry of a settlement agreement which will resolve the consolidated securities class action lawsuits, In re Sequenom Inc Securities Litigation, Master File No: 3:09-cv-00921-LAB-WMC. The defendants have agreed to pay $14 million, which will be funded by insurance proceeds.
Additionally the company has agreed to issue to the plaintiffs’ class a number of shares of Sequenom common stock. These shares shall constitute 9.95% of the total shares then outstanding, subject to certain limitations. The company has also agreed to adopt or continue its implementation of changes and additions to certain corporate governance policies, protocols and practices. The terms of the settlement are subject to approval by the United States District Court.
The settlement agreement contains no admission of liability, but the company is settling the lawsuit to avoid potentially lengthy, costly, distracting and time-consuming litigation.
Additional details about the proposed settlement can be found in the settlement agreement, a copy of which is attached as an exhibit to the company’s current report on Form 8-K that has been filed today with the U.S. Securities and Exchange Commission. The settlement agreement remains subject to approval by the United States District Court for the Southern District of California.
Dr Harry Hixson, interim CEO and chairman of the board, stated that, "we are pleased to have reached an agreement with plaintiffs to settle this litigation, and we believe that this outcome is in the best interest of the company and its shareholders. I look forward to closing this chapter for the company and focusing on meeting our 2010 milestones, which include the launch of a number of molecular diagnostic tests."
Source: Sequenom
