To resolve a lawsuit that accuses Retrophin Inc. of failing to disclose Martin Shkreli‘s transactions (founder and former CEO of Retrophin), the company has agreed to pay $3 million, according to an article published this morning in Reuters.
The lawsuit was filed in 2014, the same year that Shkreli was fired from Retrophin. The proposed class action settlement would resolve claims against Shkreli, who continues to plead not guilty to the criminal charges. Prosecutors accuse Shkreli of having been involved in a Ponzi-like scheme, “defrauding investors in his MSMB Capital Management hedge fund and misappropriating $11 million in assets from Retrophin to repay them.”
Shkreli is scheduled to appear today in court and at a congressional hearing on drug pricing Thursday.
The lawsuit also claimed that there were improper stock grants made by Retrophin and given to employees without shareholder authorization.
According to the article in Reuters, “[t]he $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.”
Denying the lawsuit’s allegations, Retrophin is working to avoid protracted and expensive litigation.
Click here to read the original story in Reuters!
Lead image photo credit.
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