Impinj Announces Proposed Settlement of Stockholder Derivative Action Lawsuit

Rhea-AI Summary

Impinj, Inc. (NASDAQ: PI) announced a preliminary court approval for a settlement regarding a stockholder derivative action, In re Impinj, Inc. Derivative Litigation, on February 26, 2021. The settlement includes governance changes and an insurance payment of up to $900,000 for plaintiff's attorney fees. A final settlement hearing is scheduled for May 11, 2021. The details are accessible on their Investor Relations website.

Positive

• Preliminary court approval for settlement may lead to resolution and reduced litigation risk.
• Governance changes outlined in the settlement could enhance company oversight.

Negative

• Settlement includes a significant financial obligation of up to $900,000 in attorney fees, impacting company's finances.

Impinj, Inc. (NASDAQ: PI), a leading provider and pioneer of RAIN RFID solutions, today announced that on February 26, 2021, the United States District Court for the District of Delaware (the “Court”) issued an order (the “Preliminary Order”) providing for preliminary approval of the proposed settlement of the claims asserted nominally on behalf of the company against the individual defendants named in the previously disclosed stockholder derivative action entitled In re Impinj, Inc. Derivative Litigation (C.A. No. 18-cv-01686-RGA) pending before the Court in accordance with the Stipulation of Settlement, dated July 10, 2020 (the “Stipulation of Settlement”). The Stipulation of Settlement calls for the company to adopt certain governance changes and for our insurer to pay plaintiff’s counsel up to $900,000 in attorneys’ fees. The Preliminary Order set a final settlement approval hearing for May 11, 2021. As required by the Preliminary Order, the Stipulation of Settlement and the Notice of Proposed Settlement of Derivative Action (the “Notice”) have been posted in the Investor Relations section of our website, and can be found at http://investor.impinj.com/resources/Derivative-Litigation.

About Impinj

Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things — such as apparel, automobile parts, luggage, and shipments — to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things. www.impinj.com

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FAQ

What was the outcome of the Impinj court settlement on February 26, 2021?

The U.S. District Court granted preliminary approval for a settlement in the stockholder derivative action against Impinj.

When is the final approval hearing for the Impinj settlement?

The final settlement approval hearing is scheduled for May 11, 2021.

What financial implications does the Impinj settlement have?

The settlement may require Impinj to pay up to $900,000 in attorney fees, impacting its financial position.

What are the governance changes required by the Impinj settlement?

The settlement stipulates certain governance changes to improve company oversight.