The Rosen Law Firm, P.A. Announces Proposed Derivative Settlement on Behalf of Purchasers of China XD Plastics Company Limited Common Stock - CXDC

LAS VEGAS, Feb. 21, 2023 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. announces that the United States District Court for the District Court of the State of Nevada in and for the County of Clark has approved the following announcement of a proposed derivative settlement that would benefit purchasers of China XD Plastics Company Limited Common Stock CXDC:

SUMMARY NOTICE

YOU ARE HEREBY NOTIFIED, pursuant to the February 1, 2023 Order Preliminarily Approving Settlement and Providing for Notice entered in the above-captioned action, a Stipulation and Agreement of Settlement dated January 31, 2023 (the "Stipulation" or "Settlement")¹ has been entered to resolve the Action currently pending on behalf of nominal defendant China XD in this action.

On August 21, 2020, Plaintiffs filed the Complaint, bringing direct claims for breach of fiduciary duties and aiding and abetting in connection with a proposed merger and a derivative claim challenging a January 20, 2020 Transaction by China XD. On May 8, 2021, however, China XD terminated the Merger Agreement. While the termination of the Merger Agreement rendered Plaintiffs' direct claims in connection with the proposed merger moot, Plaintiffs continued to assert a derivative claim for breaches of fiduciary duty in connection with the January 20, 2020 Transaction. Plaintiffs alleged an unnamed investor acquired nearly 40% of the equity interest of the Company's two wholly owned PRC² subsidiaries [i.e., its primary operating businesses]. Plaintiffs alleged that the January 2020 Transaction was carried out at an undervalued price, driving down the value of the Company in advance of a conflicted merger. In connection with, and conditioned upon, the Settlement, China XD has agreed to implement and/or maintain corporate governance reforms, as set forth in the Stipulation ("Reforms"). The Reforms are designed to enhance and improve China XD's internal controls and systems, the effectiveness and responsiveness of China XD's Board of Directors, and ensure that investors are able to serve the Company's independent directors with process in the U.S. The Defendants dispute the allegations in this action and enter into the Stipulation and Settlement without in any way acknowledging any fault, liability, or wrongdoing of any kind.

On April 5, 2023, at 8:30 a.m., in Courtroom 15D, 200 Lewis Ave., Las Vegas, Nevada 89011, the Court will hold a hearing (the "Settlement Hearing") in the Action. The purpose of the Settlement Hearing is to determine, pursuant to Nevada Rule of Civil Procedure 23.1: (i) whether the terms of the Settlement are fair, reasonable, and adequate and should be approved; (ii) whether a final judgment should be entered; (iii) approve an amount of $75,000 attorneys' fees and expenses; and (iv) such other matters as may be necessary or proper under the circumstances.

PLEASE READ THIS SUMMARY NOTICE CAREFULLY AND IN ITS ENTIRETY. IF YOU ARE A CHINA XD SHAREHOLDER, YOUR RIGHTS MAY BE AFFECTED BY THE SETTLEMENT OF THE ACTION.

This is a summary notice only. For additional information about the claims asserted in the Action and the terms of the proposed Settlement, please refer to the documents filed with the Court in the Action, the Stipulation (filed as an exhibit to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission and available at www.sec.gov), and the full-length Notice of Proposed Settlement (the "Notice").

PLEASE DO NOT CONTACT THE COURT REGARDING THIS SUMMARY NOTICE.

If you have any questions about matters in this Summary Notice you may contact Patrick R. Leverty of Leverty & Associates Law CHTD, at 832 Willow Street, Reno, Nevada 89502. You may contact Mr. Leverty in writing, or by telephone at (775) 322-6636.

If you are a China XD shareholder, you will be bound by the Order and Final Judgment of the Court granting final approval of the Settlement, and shall be deemed to have waived the right to object (including the right to appeal) and forever shall be barred, in this proceeding or in any other proceeding, from raising such objection. Any objections to the Settlement must be filed on or before March 22, 2023, in accordance with the procedures set forth in the Notice.

DATED: FEBRUARY 1, 2023

BY ORDER OF THE
DISTRICT COURT OF
CLARK COUNTY, NEVADA

¹ Except as otherwise defined herein, all capitalized terms shall have the same meanings as set forth in the Stipulation.
² "PRC" is People's Republic of China.