SELLAS Life Sciences Announces Final Court Approval of Settlement of Derivative Litigation
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Rhea-AI Summary
SELLAS Life Sciences Group (NASDAQ: SLS) announced the final approval on November 19, 2021, by the United States District Court for the District of New Jersey regarding the settlement of claims related to its predecessor, Galena Biopharma, Inc.. This settlement resolves derivative actions Keller v. Ashton and Johnson v. Schwartz and mandates the adoption of new policies for future commercialization of clinical candidates. The company's insurer will cover attorney's fees up to $270,000. SELLAS focuses on developing cancer immunotherapies, with its lead product candidate, galinpepimut-S (GPS).
Positive
- Final court approval of the settlement mitigates potential legal risks.
- Adoption of new policies may improve future commercialization strategies.
Negative
- Settlement costs include up to $270,000 in attorney's fees.
Details
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Claims in Derivative Suits Related to Activities of SELLAS’ Predecessor, Galena Biopharma, Inc.
NEW YORK, Nov. 23, 2021 (GLOBE NEWSWIRE) -- SELLAS Life Sciences Group, Inc. (NASDAQ: SLS) ("SELLAS" or the “Company”), a late-stage clinical biopharmaceutical company focused on developing novel cancer immunotherapies for a broad range of indications, today announced that on November 19, 2021 the United States District Court for the District of New Jersey (the "Court") issued the final approval of the settlement of the claims relating to the Company’s predecessor, Galena Biopharma, Inc., and asserted derivatively on behalf of the Company against the individual defendants named in the previously disclosed stockholder derivative actions (i) Keller v. Ashton, et al, Civil Action No. 2:17-cv-1777 (D.N.J.); and (ii) Johnson v. Schwartz, et al, Civil Action No. 2:18-cv-00903 (D.N.J.) pending before the Court in accordance with the Stipulation of Settlement, dated June 15, 2021, which also resolves all claims asserted in a third derivative action arising from the same facts, Jacobs v. Schwartz, et al, Case No. CIVMSC17-01222 (Calif. Sup. Ct., Contra Costa). The Stipulation calls for the Company to adopt certain policies relating to the potential future commercialization of the Company’s clinical candidates and for the Company's insurer to pay plaintiff's counsel up to
About SELLAS Life Sciences Group, Inc.
SELLAS is a late-stage clinical biopharmaceutical company focused on developing novel cancer immunotherapeutics for a broad range of indications. SELLAS’ lead product candidate, galinpepimut-S (GPS), is licensed from Memorial Sloan Kettering Cancer Center and targets the WT1 protein, which is present in an array of tumor types. GPS has potential both as a monotherapy and in combination to address a broad spectrum of hematologic malignancies and solid tumor indications. SELLAS’ second product candidate, nelipepimut-S (NPS), is a HER2-directed cancer immunotherapy with potential to treat patients with early-stage breast cancer with low to intermediate HER2 expression, otherwise known as HER2 1+ or 2+, which includes TNBC patients, following the standard of care.
For more information on SELLAS, please visit www.sellaslifesciences.com.
Investor Contacts
Allison Soss
KCSA Strategic Communications
Email: SELLAS@kcsa.com
Phone: 212.896.1267
Media Contacts
Raquel Cona
KCSA Strategic Communications
Email: SELLAS@kcsa.com
Phone: 212.896.1276
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