CV Sciences (CVSI) Announces Proposed Settlement of Shareholder Litigation

CV Sciences, Inc. (OTCQB: CVSI) (the "Company", "CV Sciences", "our", "us" or "we"), a preeminent consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products, announced today that CV Sciences has received preliminary approval a proposed settlement of a derivative lawsuit pending in Nevada. 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. On July 2, 2019, the court entered a final order dismissing the class action complaint with prejudice.

The parties agreed to a settlement in principal in January 2022. Plaintiff filed a motion for preliminary approval of proposed settlement on June 1, 2022. On February 7, 2023, the U.S. District Court, District of Nevada granted preliminary approval of the proposed settlement. On May 15, 2023, the U.S. District Court will hold a hearing to determine whether to grant final approval of the settlement agreement. The proposed settlement, if approved by the court, will resolve all claims asserted in the action without any admission, concession or finding of any fault, liability or wrongdoing by the Company or any defendant. CV Sciences and the individual defendants continue to deny any wrongdoing. 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.

Additional details regarding the proposed settlement are included in that Current Report on Form 8-K filed by CV Sciences with the Securities and Exchange Commission ("SEC") on March 2, 2023. The Stipulation and Agreement of Settlement and Notice of Proposed Settlement ("Notice") are available at https://ir.cvsciences.com/governance-docs. A copy of the Notice is attached.

Notice of Settlement

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