UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
IN RE DELCATH SYSTEMS, INC
13 Civ. 3494 (LGS)
DERIVATIVE SHAREHOLDER LITIGATION
13 Civ. 4002 (LGS)
NOTICE OF PROPOSED SETTLEMENT OF DERIVATIVE ACTION, HEARING THEREON, AND RIGHT TO APPEAR
TO: ALL CURRENT RECORD HOLDERS AND BENEFICIAL OWNERS OF COMMON STOCK OF DELCATH SYSTEMS, INC. (“DELCATH” OR “THE COMPANY”) AS OF JULY 2, 2015 (THE “RECORD DATE”).
Notice is hereby provided to you of the proposed Settlement in the above-captioned derivative lawsuit. This Notice is provided by order of the United States District Court for the Southern District of New York (the “Court”). It is not an expression of any opinion by the Court. It is to notify current shareholders of the terms of the proposed Settlement of the action. The Court has made no findings or determinations concerning the merits of this Action. The recitation of the background and circumstances of the Settlement contained herein does not constitute the findings of the Court. It is based on representations made to the Court by counsel for the parties.
The Settlement is based on changes to the Company’s governance practices and procedures. There will be no cash recovery or distribution from this Settlement. Included in this Settlement, and part of the release, is a related derivative action pending in New York State Court captioned, Howard D. Weinstein, derivatively on behalf of Delcath Systems, Inc. v. Harold S. Koplewicz, et al., Case No. 652030/2013 (Sup. Ct. N.Y.).
A hearing will be held at 11:30 a.m. on October 19, 2015, before the Honorable Lorna G. Schofield, United States District Judge, at the Courthouse for the United States District Court, Southern District of New York, 40 Foley Square, Courtroom 1106, New York, New York, 10007, for the purpose of determining, among other things, whether to approve the proposed Settlement of the claims against the Defendants, which is based on changes to the Company’s governance practices and procedures. Plaintiffs’ Counsel request attorneys’ fees and reimbursement of expenses of $495,000 for this consolidated action and the state court action. Plaintiffs also request a Service Award in the aggregate amount of $6,500 to be paid from the $495,000, subject to Court approval. A further description of the Settlement can be found below and through filings in the pending action styled In re Delcath Systems, Inc. Derivative Shareholder Litigation, Civil Action No. 1:13-CV-03494-LGS (S.D.N.Y.).
Please read this Notice carefully and in its entirety. This Notice relates to a proposed Settlement and dismissal of litigation and contains important information regarding your rights. Your rights may be affected by these legal proceedings. If the Court approves the Settlement, you will be forever barred from contesting the approval of the proposed Settlement and from pursuing the settled claim.
Any shareholders that wish to object to this Settlement must do so in writing by September 28, 2015 and it must contain the information as set forth in Section XIII of this notice. The Court will not consider any objection that does not substantially comply with these requirements. Written objections must be sent by hand or by first class mail, postage pre-paid to Lead Counsel: William B. Federman, Federman & Sherwood, 10205 N. Pennsylvania Avenue, Oklahoma City, Oklahoma 73120.
If you hold Delcath Common Stock for the benefit of another, please promptly transmit this document to such beneficial owner.
Posted on Fri, August 21, 2015
by Robin Hester filed under