(Photo: Reuters/Brendan McDermid)
Retrophin Inc has agreed to pay $3 million to resolve a lawsuit by investors accusing the pharmaceutical company of failing to disclose various transactions that benefited former Chief Executive Officer Martin Shkreli, who has since been indicted for securities fraud.
The proposed class action settlement, which also resolves claims against Shkreli, was filed in federal court in Manhattan on Friday and granted preliminary approval by U.S. District Judge Kevin Castel on Tuesday.
The $3 million settlement equals 7 percent to 10 percent of the $26 million to $41 million in likely recoverable damages, according to lead plaintiff Grachya Kazanchyan’s lawyers at Pomerantz LLP, who in turn plan to seek $1 million in legal fees.
The original article can be found at reuters.com