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RETA.US
id: 893

Reata Pharmaceuticals (RETA) $45M Shareholder Settlement

$45,000,000
Cash Settlement
E.D. Texas
Court
4:21-cv-00987
Case number
11/14/2016
Class period Start
12/08/2021
Class period End
04/24/2024
Claim deadline

Reata Pharmaceuticals (RETA) agreed to settle $45 million with shareholders to end claims over failing to disclose concerns about the validity of a clinical study for kidney disease candidate, bardoxolone.

Case Details:

Reata Pharmaceuticals developed a drug called bardoxolone for kidney disease. They applied for FDA approval, highlighting positive study results.

However, Reata supposedly didn't reveal FDA concerns about the study's validity, risking the drug's approval.

On December 6, 2021, the FDA questioned the study design, causing $RETA to drop by 38%.

Two days later, the FDA declared bardoxolone ineffective, leading to an additional 46% $RETA decline.

Reata has now decided to resolve all the allegations and pay a $45M settlement.

Case Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.67
Filing date
12/20/2021
Lead Plaintiff Deadline
02/18/2022
Plaintiffs
Tim Doyle
Attorneys
Kirby McInerney LLP
Defendants
Warren Huff, Manmeet S. Soni, Colin J. Meyer, R. Kent McGaughy, Jr., Jack B. Nielsen, William E.Rose, William D. McClellan, Jr., and James E. Bass
Judge
Amos L. Mazzant III
Administrator
EPIQ
Court hearing date
03/29/2024
Exclusion deadline
03/08/2024
Objection deadline
03/08/2024
Class wide damages
$834,300,000
Trades matching type
LIFO
Disbursement date
04/10/2025

Frequently Asked Questions

Who is eligible for this settlement?

All persons or entities who purchased or otherwise acquired the publicly traded common stock of Reata between November 14, 2016 and December 8, 2021, inclusive, including all persons or entities who purchased or otherwise acquired Reata common stock pursuant and/or traceable to Reata’s 2019 Offering and/or 2020 Offering.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $1.67 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $6.68 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.