As previously disclosed, Rockwell Medical, Inc. (“Rockwell” or the “Company”) is a nominal defendant in a consolidated shareholder derivative action pending in the United States District Court in the Eastern District of New York (the “Court”), purportedly brought on behalf of the Company (as nominal defendant) and against certain of the Company’s current and former directors (the “Individual Defendants”). The operative complaint (the “Consolidated Derivative Complaint”) pending in the consolidated action (the “Litigation”) asserts causes of actions against the Individual Defendants and alleges the Individual Defendants breached certain duties by, among other things, permitting alleged misstatements to be made in public filings regarding the status of separate reimbursement for Triferic from the Centers for Medicare & Medicaid Services, the adequacy of the Company’s reserves, and internal controls. The Consolidated Derivative Complaint demands a jury trial, seeking monetary damages, corporate governance reforms, injunctive relief on the Individual Defendants’ trading activities, restitution, and attorneys’ fees.
On May 18, 2020, Rockwell, the Individual Defendants, and Plaintiffs (the “Settling Parties”) entered into a formal Stipulation of Settlement, which memorializes the terms of the Settling Parties’ settlement of the Litigation (the “Settlement”). On June 2, 2020, the Court issued an order preliminarily approving the Settlement. A hearing to determine whether the Court should issue a final order approving the proposed Settlement has been scheduled for August 11, 2020. The terms of the proposed Settlement are described in the Notice of Pendency and Proposed Settlement of Derivative Action (the “Notice”) attached hereto as Exhibit 99.1, and include certain corporate governance reform measures. The Notice and the related Stipulation of Settlement are also available at https://www.rockwellderivlitigation.com/documents.
(d) Exhibits.
EXHIBIT INDEX
ROCKWELL MEDICAL, INC. Exhibit
EX-99.1 2 exhibit991-rockwellmedical.htm EXHIBIT 99.1 Exhibit Exhibit 99.1UNITED STATES DISTRICT COURTEASTERN DISTRICT OF NEW YORKIN RE ROCKWELL MEDICAL,…
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About ROCKWELL MEDICAL, INC. (NASDAQ:RMTI)

Rockwell Medical, Inc. (Rockwell) is a biopharmaceutical company targeting end-stage renal disease (ESRD) and chronic kidney disease (CKD) with products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. The Company operates through the hemodialysis market segment, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. Its lead branded drug, Triferic is indicated for iron maintenance. Triferic is an iron compound that is delivered to hemodialysis patients through dialysate, replacing the iron loss that occurs during their dialysis treatment. Its generic drug, Calcitriol, is indicated for treating secondary hyperparathyroidism in dialysis patients. It manufactures, sells, delivers and distributes hemodialysis concentrates, along with a range of ancillary products.