Quantum Biopharma Ltd. (NASDAQ:QNTM) shares climbed on Friday after the company disclosed a wide-reaching settlement agreement with its former CEO, Raza Bokhari. The agreement ends years of contentious legal battles that began in early 2021.
The agreement resolves all legal disputes between Bokhari and Quantum Biopharma, including those involving current executives Zeeshan Saeed and Anthony Durkacz, who also signed the settlement in their personal capacities.
The deal, which involves a $2.35 million non-dilutive payment from Bokhari to Quantum Biopharma, effectively halts ongoing litigation in courts across the U.S. and Canada.
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Under the agreement, neither Bokhari nor the company admitted to any wrongdoing.
All parties acknowledged they acted in the best interests of the business and its shareholders.
The resolution includes the settlement of several court cases, arbitration decisions, and indemnification claims that had dragged on for over three years.
The payment from Bokhari covers all outstanding financial claims brought by the company and its leadership team, including Saeed and Durkacz, as well as counterclaims by Bokhari.
The company stated the funds represent a direct infusion of capital and help eliminate any potential dilution for shareholders.
The wide-ranging settlement addresses multiple legal proceedings, including rulings previously handed down by the U.S. Court of Appeals for the Third Circuit and Ontario courts.
Among them were confirmed arbitration awards totaling millions of dollars, indemnification actions, and claims of defamation and tortious interference.
The settlement not only closes these cases but also stipulates that no future litigation related to these matters may be pursued, delivering finality after a protracted corporate power struggle that had weighed on investor sentiment for years.
Price Action: QNTM shares are trading higher by 9.7% to $13.80 at last check Friday.
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