MAYNE Pharma Group Limited has reached a binding agreement to settle the shareholder class action initiated in the Supreme Court of Victoria in Aug 2021, according to a recent ASX announcement.
The settlement amount is A$38 million, with approximately A$4.7 million funded by insurance and the remainder from Mayne Pharma's cash reserves.
The amount covers the full and final settlement of the proceedings, including interest, litigation costs, and the plaintiff's legal fees.
The class action was filed on behalf of shareholders who acquired Mayne Pharma shares between 24 Nov 2014 and 15 Dec 2016.
The lawsuit pertained to alleged misleading or deceptive conduct and breaches of continuous disclosure obligations related to alleged anti-competitive behaviour in the United States, previously investigated by the US Department of Justice and the Attorney General of Connecticut.
As of 31 Dec 2023, Mayne Pharma held cash and marketable securities totalling A$146.8 million, ensuring sufficient reserves for its operations and obligations.
The company maintains its financial outlook for the fiscal year ending Jun and will report its year-end cash balance with its full-year results next month. JG
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