Item 1. Legal Proceedings
Item
1. Legal Proceedings
From time to time, Protara may be subject
to various legal proceedings and claims that arise in the ordinary course of its business activities.
Between November
15 and December 23, 2019, four lawsuits were filed in federal court against Proteon, ArTara, Merger Sub and the individual members
of the Proteon Board (captioned Patrick Plumley v. Proteon Therapeutics, Inc., et al., Case No. 1:19-cv-02143-UNA (D. Del. filed
11/15/19)); Jeffrey Teow v. Proteon Therapeutics, Inc., et al., Case No. 1:19-cv-06745 (E.D.N.Y., filed 11/30/19); Neil Lanteigne
v. Proteon Therapeutics, et al., Case No. 1:19-cv-12436 (D. Mass., filed 12/03/19); Stephen Wagner v. Proteon Therapeutics, Inc.,
et al., Case No. 1:19-cv-02343 (D. Del., filed 12/23/19). The Plumley complaint was brought as a purported class action lawsuit.
All four lawsuits alleged that the definitive proxy statement in the preliminary registration statement on Form S-4 filed by Proteon
on November 7, 2019 with the SEC in connection with the proposed Merger (the “Proxy Statement”) omitted material information
with respect to the transactions contemplated by the Merger Agreement, rendering it false and misleading in violation of Sections
14(a) (and Rule 14a-9 promulgated thereunder) and 20(a) of the Exchange Act. The plaintiffs in each of the four lawsuits sought,
among other things, injunctive relief, rescission, declaratory relief and unspecified monetary damages. On December 31, 2019,
Proteon filed an amendment to the Proxy Statement on Form 8-K, which contained certain supplemental disclosures intended to moot
the plaintiffs’ disclosure claims. On January 9, 2019, Proteon held a special meeting of its stockholders, at which the
Company’s stockholders approved the Merger. On January 27, 2020, plaintiff in the Lanteigne action voluntarily dismissed
his case. On February 3, 2020, plaintiff in the Plumley action voluntarily dismissed his case. On February 7, 2020, plaintiff
in the Teow action voluntarily dismissed his case. On February 10, 2020, plaintiff in the Wagner action dismissed his case. Thereafter,
in connection with the supplemental disclosures that were filed by the Company to moot plaintiffs’ claims in these actions,
counsel for plaintiffs demanded an award of attorney’s fees, which the parties recently resolved.
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