Spectranetics has agreed to settle both the securities class action litigation pending against the company and certain current and former officers and directors, as well as the stockholder derivative case naming the company as a nominal defendant and certain current and former officers and directors as defendants.
The class action suits were brought on behalf of persons and entities who bought or acquired shares of Spectranetics' common stock between March 16, 2007 and Sept. 4, 2008.
Under the proposed class action settlement, the Colorado Springs, Colo.-based company said that the claims will be dismissed with prejudice and released in exchange for a cash payment of $8.5 million to be funded by Spectranetics' insurers.
The proposed settlement remains subject to the satisfaction of various conditions, including negotiation and execution of a final settlement stipulation and approval by the U.S. District Court for the District of Colorado following notice to members of the class.
Under the terms of the proposed derivative settlement, plaintiffs (on their own behalf and derivatively on behalf of Spectranetics) will dismiss the stockholder derivative case with prejudice and release their claims in exchange for formalizing certain corporate governance procedures and payment of attorneys fees of $350,000, according to Spectranetics.
As with the class action settlement, the proposed settlement will be funded by Spectranetics' insurers and remains subject to the satisfaction of various conditions, including negotiation and execution of a final stipulation of settlement and approval by the U.S. District Court for the District of Colorado.
The company did not acknowledge guilt with the settlement, maintaining that the suits were “without merit.”