Hemispherx Biopharma (HEB) Gets Final Approval for Settlement of Derivative, Class Action Suit

September 22, 2016 8:35 AM EDT
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Hemispherx Biopharma (NYSE: HEB) announced that the Court of Chancery of the State of Delaware has issued an order granting final approval of a settlement of the derivative and class action case captioned Kastis, et al. v. Carter, et al.

At a final settlement hearing on September 19, 2016, the Court approved the settlement and awarded the plaintiffs’ counsel $1.25 million in attorneys’ fees. No Company funds were used to pay the settlement or attorneys’ fees award; the settlement was funded by Hemispherx’s insurance companies which paid to Hemispherx $3.5 million in settlement of several policy disputes, in part related to this claim, that were in policy mediation. The final settlement does not constitute any admission of fault or wrongdoing by Hemispherx or any of the individual defendants.

"We are pleased to close this chapter and move forward toward continued success in accomplishing our important corporate goals of developing and commercializing Ampligen and Alferon," said Tom Equels, Hemispherx's CEO. "The net result of this order is that substantial funds and management time are now free for business purposes, rather than litigation, and we have settled all pending material litigation."

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