New York, NY, December 30, 2021 (GLOBE NEWSWIRE) – SCWorx Corp. (Nasdaq: WORX) announced today that it has reached binding agreements to settle both the securities class action lawsuit and the derivative lawsuits that began in 2020.
The class action was grouped under the title Yannes v. SCWorx Corp. (1: 20-cv-03349). The proposed settlement resolves all claims made against SCWorx and the other named defendants without any admission of liability or wrongdoing on the part of the Company or any defendant. Pursuant to the class action agreement, (i) the insurers of the Company and Marc Schessel (former CEO) will make a cash payment to the class plaintiffs and (ii) the Company will issue $ 600,000 of common stock to the plaintiffs. of the group. in exchange for which all parties will be released from all claims relating to the securities class action litigation. The class action agreement provides that the parties will negotiate in good faith to reach a final settlement agreement within thirty days. Once the Company has issued the shares valued at $ 600,000, the Company considers that it will have met its obligations with respect to the payment of the accumulated retention liability of $ 750,000 applicable to its policy. D&O insurance. The final settlement agreement will be subject to court approval.
In addition, the Company and the Managing Defendants (Marc Schessel, Steven Wallitt, Charles Miller and Robert Christie) entered into a binding agreement with the derivative claimant shareholders to settle the derivative litigation in which SCWorx was a nominal defendant. Under the terms of this agreement, (i) the insurers of the Guiding Defendants will make a cash payment to legal counsel of the shareholders’ derivative claimants to cover their legal fees and (ii) the Company will adopt certain corporate governance reforms within 60 days. following court approval of the settlement, in return for which all parties will be released from all claims relating to the derivative class action litigation. This agreement provides that the parties will negotiate in good faith to reach a final settlement agreement within thirty days, which will be subject to court approval.
“One of my main goals since becoming CEO of SCWorx has been to resolve class and derivative lawsuits and move forward with a focus on our core data management business,” said Tim Hannibal , CEO of SCWorx. “I want to thank our Board of Directors, our management team and our legal advisors for helping to achieve these goals and put these issues behind us. We look forward to continuing to bring our SaaS service offerings to healthcare providers as they grapple with the challenges caused by Covid-19. Our service offerings help solve the challenges hospitals face in their supply chain and provide the analytics and visibility needed to achieve the desired cost savings. ”
About SCWorx Corp.
SCWorx has created an advanced assigned virtualized item data warehouse using machine learning and artificial intelligence to deliver a suite of software-as-a-service solutions to healthcare providers. The customer value proposition revolves around the full integration of all solution modules with the enterprise data platform for cost savings, operational efficiency and accurate benchmarking and reporting . Solution modules include Virtual Item Master, Data Cleansing and Normalization, Contract Management and Pricing Request Module (RFP), Automated Discount Management Module, Data Interoperability Module (EMR, MMIS, finance), the automated portal for adding articles, the virtual ledger and the data analysis module. SCWorx creates a single source of information for healthcare provider governance and data analytics requirements.
This press release contains “forward-looking statements” that involve substantial risks and uncertainties for the safe harbor purposes of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this press release regarding strategy, future operations, renewals and terminations of future contracts, future financial condition, prospects, plans and objectives of management are forward-looking statements. You can identify many (but not all) of these forward-looking statements by looking for words such as “assume”, “approximate”, “believe”, “expect”, “anticipate”, “estimate”, “plans” , “Research”, “” intends “,” expects “,” could “,” would “,” could “or other similar expressions. You should not place undue reliance on these forward-looking statements. These statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in forward-looking statements due to many factors, including, without limitation, the security of future contracts and orders, future product supply, supply interruptions, cost containment, the ability to project future liquidity use and necessary reserves for liabilities and business operations possible future, the availability of sufficient resources of the Company to achieve its business objectives and operational requirements and other important factors which are detailed in documents filed from time to time by SCWorx with the Securities and Exchange Commission, including its annual report on Form 10-K for the fiscal year ended December 31, 2020, its quarterly reports on Form 10-Q and current reports on Form 8-K. The matters described in forward-looking statements may also be affected by other known and unknown risks, trends, uncertainties and factors, many of which are beyond the Company’s ability to control or predict. SCWorx does not undertake to publicly publish revisions of forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events.
Source: SCWorx Corp.
Release December 30, 2021