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RKLY.US

id: 881

Rockley Photonics ($RKLY) $10M Investor Settlement

The settlement terms have been submitted to the court for approval.

$10,000,000

Cash Settlement

C.D. California

Court

2:23-cv-09501

Case number

08/11/2021

Class period Start

01/23/2023

Class period End

Rockley Photonics has reached a $10M settlement with $RKLY investors to resolve claims that it misled them during its 2021 de-SPAC merger with SC Health by overstating its relationship with Apple and the readiness of its wearable biosensor technology.

Outline:

Rockley went public through a merger with SC Health in August 2021 while promoting its wearable biosensor technology and highlighting Apple as a key customer. Investors later alleged the company overstated both its commercial readiness and the strength of that relationship. Reports of development delays and a weaker outlook raised doubts about the company’s projections. After the stock fell sharply, investors filed suit, and Rockley later settled.

Timeline:
August 2021: Rockley merged with SC Health and began trading under $RKLY.
2021–2022: Reports surfaced that Rockley’s product development was delayed and its projections were overstated.
January 2022: $RKLY fell over 30% as investors questioned the company’s outlook.
March 2023: Investors filed suit alleging misstatements tied to the merger.
February 2026: Rockley reached a tentative settlement to resolve the claims.
Background:

Rockley Photonics entered public markets through a merger with the SPAC SC Health Corp. in 2021. During the transaction and in related disclosures, the company highlighted its wearable biosensor technology and promoted relationships with major technology companies.

The complaint alleges Rockley overstated the maturity of its technology and emphasized Apple as a major customer that validated its platform. According to the claims, however, Rockley had no revenue from Apple and its biosensor products were still pre-commercial and facing development delays.

Investors also alleged that Rockley and SC Health failed to adequately disclose risks related to cash burn, product development timelines, and limited near-term revenue visibility. As projections failed to materialize and concerns about the company’s outlook increased, the stock declined significantly.

What Can Investors Expect Now?

Rockley Photonics has reached a settlement with $RKLY investors to resolve claims tied to statements about its Apple relationship and the readiness of its biosensor technology during its 2021 de-SPAC merger.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Stipulative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.11

Filing date

11/09/2023

Lead Plaintiff Deadline

01/08/2024

Plaintiffs

Kenneth S. Grossman

Attorneys

Robbins Geller Rudman & Dowd LLP

Defendants

David Sin, Angelo John Coloma, Andrew Rickman, Mahesh Karanth, Chad Becker

Administrator

Verita Global

Attorney fee

$3,450,000

Trades matching type

FIFO

Frequently Asked Questions

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