Molecular Biosystems
This article was originally published in The Gray Sheet
Executive Summary
Will pay $3 mil. in cash and $1.5 mil. in MBI common stock to a class of stock purchasers under a lawsuit settlement given preliminary approval by the U.S. District Court for the Southern District of California, the company reports. The suit, filed in November 1992, "claimed that the company, its directors, and certain of its officers misled investors as to the timing of and prospects for approval" of the company's Albunex echocardiography contrast agent, MBI notes. The company "denied all claims of wrongdoing and maintains this denial as part of the settlement agreement." The insurer for directors and officers will provide $800,000 of the settlement's cash payment. As a result of the pact, MBI will record a $3.7 mil. charge to earnings for its fourth fiscal quarter ended March 31