Isolagen settles class action and law suits

US biopharmaceutical firm Isolagen says that it has reached an agreement in principle to settle its securities class action law suit and its two derivative actions against the company and certain of its current and former officers and directors (Civil Action Case No 05-cv-04983-RB, Case No 06-cv-01302-RB and Case No 08-cv-724-RB).

:"We are pleased to have reached agreement in principle to resolve the last of the securities class action and derivative action law suits," said chief executive Declan Daly, adding that "the Isolagen management team continues to execute against its goals in an effort to positively advance the company."

Payments for all settlements will be funded entirely by the company's liability insurance. Under the terms of the proposed accord, a payment will be made to the putative class in the securities action law suit. In the two derivative action settlements, one will be made for plaintiffs' attorney fees. Also, in connection with the above proposed settlements, Isolagen is to receive a final payment of $500,000 from it liability insurance carrier for reimbursement of any and all current and future defense costs.