ENGLEWOOD, Colo., Jan. 11,
2024 /PRNewswire/ -- Ampio Pharmaceuticals, Inc.
(NYSE American: AMPE) (the "Company" or "Ampio"), a pre-revenue
stage biopharmaceutical company focused on development of a
potential treatment for osteoarthritis as part of its OA-201
program, today announced that it has reached settlements in
principle in the pending securities fraud class
action, Case Number 22-cv-2105-WJM-MEH (the "Securities Class
Action"), and the pending consolidated derivative actions in
the United States District Court
for the District of Colorado, Case
Number 22-cv-2803-KLM (the "Consolidated Derivative Actions"). The
settlements are subject to various conditions, including
confirmatory discovery in the Securities Class Action, negotiation
and execution of the full settlement agreements and obtaining court
approval in each action. On January 9,
2024, the Company along with the other parties to each case
filed status reports in both the Securities Class Action and the
Consolidated Derivative Actions, advising the respective courts of
the status of the settlements in principle. The settlement of the
Consolidated Derivative Actions is supported by the plaintiff in
the pending Colorado state court
derivative action, Case Number 2023CV30287, as well as two
stockholders who previously submitted pre-litigation demand letters
to the Company's Board of Directors.
Ampio currently expects the amount to be paid in both
settlements, including related defense costs, will be covered by,
and within the limits of, its D&O insurance policy. The
settlements in principle do not constitute any admission of fault,
wrongdoing or liability as to the Company or any other defendant.
While the timing of completion of the settlement agreements and
filing motions to seek court approvals are uncertain, the Company
will be endeavoring to finalize and execute the settlement
agreements and have motions for preliminary approval submitted to
the relevant courts within the next 120 days. If finally approved
by the relevant courts, the settlements will result in the
dismissal with prejudice of all of the pending actions and the
withdrawal of the two stockholder pre-litigation demands.
The Company has provided disclosure relating to these legal
matters in its periodic reports on Forms 10-K and 10-Q throughout
the pendency of these actions. The settlements in principle do not
affect the ongoing investigation by the Securities and Exchange
Commission, which also was previously reported by the Company in
its periodic reports on Forms 10-K and 10-Q. Ampio intends to
continue to cooperate fully with the SEC.
About Ampio Pharmaceuticals, Inc.
Located in Englewood, Colorado,
Ampio Pharmaceuticals, Inc. (NYSE American: AMPE) is focused on
development of a potential treatment for osteoarthritis as part of
its OA-201 program. The OA-201 development program is seeking to
advance Ampio's unique and proprietary small molecule
formulation through pain and chondroprotection preclinical studies
to the next phases of drug development to address the large and
attractive opportunity for treatment of osteoarthritis of the knee
("OAK") and other joints.
Caution Regarding Forward-Looking Statements
All statements other than statements of historical facts
contained in this letter, including statements regarding the
adequacy of insurance coverage for the costs of defense and
settlement, finalizing of the settlement agreements, and timing of
the filing of motions for preliminary court approval (and later
final court approval), are forward-looking statements. Words such
as "may", "will", "should", "forecast", "could", "expect",
"suggest", "believe", "estimate", "continue", "anticipate",
"intend", "ongoing", "opportunity", "potential", "predicts",
"seek", "plan," or similar words, or the negatives of such terms or
other variations on such terms or comparable terminology, typically
identify forward-looking statements. There can be no assurance that
the settlements in principle of the pending actions and stockholder
demands described in this press release will be finalized or
approved by the respective courts, or that the settlements will be
completed as currently proposed, or at any particular time.
Forward-looking statements are based on certain assumptions and
expectations of future events and trends that are subject to risks
and uncertainties including: (i) the settlements in principle of
the pending actions and stockholder demands are subject to a number
of conditions, including the execution and delivery of definitive
settlement agreements reflecting the terms of the settlements in
principle, obtaining preliminary court approval of the settlements,
providing notice to stockholders of the proposed settlements, and
obtaining final, non-appealable approvals by the respective courts;
(ii) the timing of any final decision by any of the respective
courts is subject to the discretion of such court and any potential
appeal; (iii) if defense costs or the amounts associated with the
settlements of the pending actions and stockholder demands exceed
Ampio's current expectation, its insurance coverage may not be
adequate to cover the amounts incurred by the Company including as
a result of its indemnification obligations to its current and
former officers and directors; and (iv) other risks described in
"Risk Factors" and elsewhere in our Annual Report on Form 10-K for
the fiscal year ended December 31,
2022 and subsequent periodic reports filed with the SEC.
We undertake no obligation to update or revise publicly any
forward-looking statements to reflect events or circumstances after
the date of such statements for any reason, except as otherwise
required by law.
For more information, contact:
Ampio Pharmaceuticals, Inc.
Michael A. Martino
Chief Executive Officer
mmartino@ampiopharma.com
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SOURCE Ampio Pharmaceuticals, Inc.