Esperion Securities Settlement
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WELCOME TO THE ESPERION SECURITIES SETTLEMENT

The Court will hold a Settlement Hearing at 3:00 p.m. EDT, on August 23, 2021. This hearing will be accessible via Zoom video conference. Please click here for details.

This website has been established to provide general information related to the proposed settlement of the case known as Dougherty v. Esperion Therapeutics, Inc., et al., Civ. No. 2:16-cv-10089-AJT-RSW (the "Litigation"), pending before the United States District Court for the Eastern District of Michigan (the "Court"). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated April 26, 2021, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by the Settlement if you purchased or otherwise acquired Esperion Therapeutics, Inc. ("Esperion" or the "Company") common stock between August 18, 2015 and September 28, 2015, inclusive (the “Class Period”).

The individuals that lead the Litigation, Ronald E. Wallace and Walter J. Minett, are referred to as the “Class Representatives.” The company and individual, Esperion and Tim M. Mayleben, being sued are called the Defendants.

The law firms of Robbins Geller Rudman & Dowd LLP and Kahn Swick & Foti, LLC, collectively “Lead Counsel,” represent Class Members. Class Members will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses.

WHAT IS THIS LAWSUIT ABOUT?

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), the Amended Complaint in this action was filed on May 20, 2016. The Complaint alleges that Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that between August 17, 2015 and September 28, 2015, inclusive, Defendants allegedly made materially false and misleading statements and/or failed to disclose adverse information concerning the Food and Drug Administration (“FDA”) approval process for its product under development to lower LDL-cholesterol, conveyed to Esperion during the August 11, 2015 End-of-Phase 2 meeting with the FDA, which according to the Complaint, caused the price of Esperion common stock to trade at artificially inflated prices, until the market learned of the alleged false and misleading statements or omissions, and the Company’s stock price declined. Defendants deny each and all of Class Representatives’ allegations. Defendants contend that they did not make any false or misleading statements, that they disclosed all information required to be disclosed by the federal securities laws, and that they did not act with recklessness or with the intent to manipulate, deceive or defraud investors. Defendants also maintain that they have meritorious defenses to all claims that were raised or could have been raised in the Litigation, and that any losses allegedly suffered by Members of the Class were not caused by any allegedly false or misleading statements by them and/or were caused by intervening events.

On December 27, 2016, the Court granted Defendants’ motion to dismiss the Complaint. On June 19, 2017, Class Representatives appealed the dismissal to the U.S. Court of Appeals for the Sixth Circuit. On September 27, 2018, the Sixth Circuit reversed the Court’s dismissal.

On June 6, 2019, Class Representatives filed their motion to certify the action as a class action. On November 19, 2020, the Court granted the motion to certify the Class, appointing Ronald E. Wallace and Walter J. Minett as Class Representatives and Robbins Geller Rudman & Dowd LLP and Kahn Swick & Foti, LLC as Class Counsel.

The Settling Parties have engaged in extensive discovery, including the production and review of non-public documents and the taking of depositions. The Settling Parties have also retained experts on the various issues raised in the Litigation.

The Class Representatives and Defendants filed cross motions for summary judgment on September 15, 2020, and oppositions were filed on October 23, 2020. Reply briefs were filed on November 20, 2020.

On May 2, 2019, the Settling Parties attended an in-person mediation with Michelle Yoshida, Esq. of Phillips ADR. In advance of the mediation, the Settling Parties exchanged and provided to Ms. Yoshida detailed mediation statements. Although the Settling Parties negotiated in good faith, no settlement was reached, and litigation efforts continued. On November 3, 2020, the Settling Parties attended a mediation, via video conference, with the Hon. Gerald E. Rosen (Ret.), a retired federal district judge from the Eastern District of Michigan and an experienced mediator. In advance of the mediation, the Settling Parties exchanged and provided to Judge Rosen detailed mediation statements. The Settling Parties negotiated in good faith, but no settlement was reached, and litigation continued. Settlement discussions continued through Judge Rosen, and on March 12, 2021, the Settling Parties reached an agreement-in-principle to resolve the Litigation, and executed a Term Sheet memorializing their agreement.

The agreement included, among other things, the Settling Parties’ agreement to settle the Litigation in return for a cash payment of $18,250,000 for the benefit of the Class, subject to the negotiation of the terms of a Stipulation of Settlement and approval by the Court. The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement between the Settling Parties.

WHAT DOES THE SETTLEMENT PROVIDE?

The Settlement, if approved, will result in the creation of a cash settlement fund of $18,250,000.00 (the “Settlement Amount”). The Settlement Amount and any interest it earns thereon is the “Settlement Fund.” The Settlement Fund, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the “Net Settlement Fund.” If the Settlement is approved by the Court, the Net Settlement Fund will be distributed to eligible Authorized Claimants—i.e., Class Members who timely submit valid Proofs of Claim—in accordance with the proposed Plan of Allocation.

ADDITIONAL INFORMATION

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A PROOF OF CLAIM The only way to be eligible to receive a payment from the Settlement. Proofs of Claim must be postmarked or submitted online on or before September 24, 2021.
EXCLUDE YOURSELF Get no payment. This is the only option that potentially allows you to ever be part of any other lawsuit against the Defendants or any other Released Defendants Parties about the legal claims being resolved by this Settlement. Should you elect to exclude yourself from the Class you should understand that Defendants and the other Released Defendants Parties will have the right to assert any and all defenses they may have to any claims that you may seek to assert, including, without limitation, the defense that any such claims are untimely under applicable statutes of limitations and statutes of repose. Exclusions must be received on or before August 2, 2021.
OBJECT Write to the Court about why you do not like the Settlement, the Plan of Allocation, and/or the request for attorneys’ fees and expenses. You will still be a Member of the Class. Objections must be received by the Court and counsel on or before August 2, 2021. If you submit a written objection, you may (but do not have to) attend the hearing.
GO TO THE HEARING ON AUGUST 23, 2021 Ask to speak in Court about the fairness of the Settlement. Requests to speak must be received by the Court and counsel on or before August 2, 2021.
DO NOTHING Receive no payment. You will, however, still be a Member of the Class, which means that you give up your right to ever be part of any other lawsuit against the Defendants or any other Released Defendants Parties about the legal claims being resolved by this Settlement and you will be bound by any judgments or orders entered by the Court in the Litigation.

IMPORTANT DATES AND DEADLINES

Submit Proof of Claim: September 24, 2021
File Objection: August 2, 2021
Request Exclusion: August 2, 2021
File Notice of Intention to Appear: August 2, 2021
Court Hearing on Fairness of Settlement: August 23, 2021, at 3:00 p.m.