Catalyst Pharmaceuticals Announces Proposed Settlement Of Pending Securities Class Action Lawsuit

Catalyst Pharmaceutical Partners, Inc. CPRX (Catalyst Pharmaceuticals or the Company), a biopharmaceutical company focused on developing and commercializing innovative therapies for people with rare debilitating diseases, today announced that it has entered into a memorandum of understanding ("MOU") to settle its pending class action securities lawsuit. As previously disclosed, the Company and one of its executive officers are defendants in a class action lawsuit filed in the U.S. District Court for the Southern District of Florida. The amended complaint purports to state a claim for alleged misrepresentations regarding the development of Firdapse™ on behalf of a class of those who purchased shares of the Company's common stock between August 27, 2013 and October 18, 2013. Catalyst Pharmaceuticals has entered into a MOU with the lead plaintiffs in the class action lawsuit under which the parties have agreed, subject to execution of a formal stipulation of settlement and approval of the Court, to settle the lawsuit. Under the MOU, Catalyst Pharmaceuticals has agreed, subject to court approval, to pay $3.5 million in return for a dismissal and release of all claims against the defendants. Because the settlement payment is expected to be paid in full by Catalyst Pharmaceuticals' insurance carrier, it is not expected that the settlement will have any material impact on Catalyst Pharmaceutical's financial position or results of operations. The stipulation of settlement to be filed with the Court will include an acknowledgement that the defendants do not admit any liability by entering into such stipulation of settlement, and the defendants continue to deny all of the allegations against them and to maintain that the suit has no merit. Patrick J. McEnany, Catalyst Pharmaceuticals' Chairman and CEO, stated: "We believe that we would have prevailed if the litigation had proceeded. However, in light of the potential costs of continued litigation, as well as the potential burden and disruption to the Company and its management, Catalyst, together with its insurance carrier, believed that it made sense to settle the case for the amount set forth in the settlement agreement." If the proposed settlement is approved by the Court, a notice to class members will be sent with information regarding the allocation and distribution of the settlement funds and with instructions on procedures to follow to make a claim on the settlement fund.