Item 1. Legal Proceedings
Item 1. Legal
Proceedings.
In addition, on September 2, 2020,
a putative class action lawsuit, Chapman v. Fennec Pharmaceuticals Inc., was filed against the Company, Rostislav Raykov and Robert
Andrade, in the United States District Court for the Middle District of North Carolina. The complaint alleges that prior to the
receipt of the Complete Response Letter from the FDA, Fennec made materially false and misleading statements or omissions and
failed to disclose material adverse facts about Fennec’s business operations and prospects. The Company believes that the
suit is without merit and intends to defend itself vigorously. Defendants are not required to respond to the lawsuit until the
court appoints a lead plaintiff and a post-appointment complaint is filed or designated. The Company has not recorded a liability
as of September 30, 2020 because a potential loss is not probable or reasonably estimable given the preliminary nature of
the proceedings.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.