Dendreon Corp. (DNDN) today announced that it has reached an agreement in principle to settle the securities class action litigation pending against it in the United States District Court for the Western District of Washington.
Upon final approval, the settlement will resolve the claims asserted against all defendants in the previously disclosed putative securities class action. The lawsuit is currently pending against the Company and three current and former executive officers.
In the lawsuit, captioned In re Dendreon Corporation Class Action Litigation, Master Docket No. C 11-1291 JLR., an investor, purporting to represent a class consisting of persons who purchased Dendreon common stock between April 29, 2010 and August 3, 2011, sought unspecified damages from Dendreon and three current and former officers of the Company for allegedly false or misleading statements concerning the company, its finances, business operations and prospects with a focus on the market launch of PROVENGE and related forecasts concerning physician adoption, and revenue from sales of PROVENGE.
The terms agreed upon by the parties contemplates a settlement payment of $40 million, $38 million of which will be funded by Dendreon’s insurers. Dendreon and the individual defendants continue to deny that any statements they made were false or misleading.
“We are pleased to put this matter behind us,” said Christine Mikail, Executive Vice President, Corporate Development, General Counsel and Secretary of Dendreon. “Upon final approval of this settlement, Dendreon will have eliminated the potential distraction from ongoing class action litigation that began in 2011.”
DNDN shares are down 10 cents, or 1.85%, at $5.31 in pre-market trading.