Summary by Moomoo AI
Faraday Future Intelligent Electric Inc. (Faraday) has reached a settlement in principle regarding a series of derivative actions filed against certain current and former directors and officers of the company. These actions, collectively known as the Derivative Actions, alleged that between January 28, 2021, and April 14, 2022, the defendants breached fiduciary duties by issuing misleading statements and failing to disclose material facts about the company's operations and internal controls. The settlement, detailed in a Stipulation and Agreement of Settlement dated July 19, 2024, includes the adoption of specified corporate governance reforms and the payment of $775,000 in attorneys' fees and expenses to the plaintiffs' counsel, subject to court approval. A hearing to finalize the settlement is scheduled for November 4, 2024, before Judge Christina A. Snyder in the Central District of California. The settlement aims to dismiss the Derivative Actions with prejudice and release all related claims against the defendants.
