Pomerantz LLP Announces Proposed Class Action Settlement on Behalf of Purchasers of Common Stock of AVEO Pharmaceuticals, Inc. – AVEO

BOSTON--()--The following statement is being issued by Pomerantz LLP in regard to a proposed class action settlement.

UNITED STATES DISTRICT COURT

DISTRICT OF MASSACHUSETTS

 

 

 

In re AVEO Pharmaceuticals, Inc. Securities

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Litigation

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No. 1:13-cv-11157-DJC

 

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This document relates to: All Actions

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CLASS ACTION

 

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Hon. Denise J. Casper

 

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NOTICE OF PENDENCY AND SETTLEMENT OF CLASS ACTION

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THIS ACTION.

TO: ALL PERSONS OR ENTITIES WHO PURCHASED OR ACQUIRED SHARES OF AVEO PHARMACEUTICALS, INC. (“AVEO”) BETWEEN MAY 16, 2012 AND MAY 1, 2013, BOTH DATES INCLUSIVE (“THE CLASS PERIOD”).

Excluded from the Class are (1) Defendants and their immediate families, (2) any entity in which Defendants have or had a controlling interest, (3) current and former officers, directors and employees of AVEO, and (4) the legal representatives, heirs, successors, or assigns of any excluded party.

YOU ARE HEREBY NOTIFIED, pursuant to an Order of the United States District Court, District of Massachusetts (the “Court”) of a proposed Settlement in In re AVEO Securities Litigation, No. 1:13-cv-11157 (the “Action”). If approved by the Court, the Settlement will provide for $15 million cash and 2 million warrants to be issued after final approval of this Settlement, with a one-year term and a $3.00 strike price. Plaintiffs estimate there were approximately 24.03 million shares of AVEO common stock traded during the Class Period that may have been damaged. If all of those shares were damaged, the estimated average recovery will have an economic value of approximately $0.7501 per share, before deduction of Court approved fees and expenses and costs of notice and claims administration, based on Plaintiffs’ estimated value of the warrant component of the Settlement at $1.5213 per warrant (as of January 31, 2018). The actual amount disbursed to members of the Class who participate in the Settlement may be more or less than this figure.

A hearing will be held before Honorable Denise J. Casper on May 30, 2018, at 2:30 p.m., in Courtroom 11 of the United States District Court for the District of Massachusetts, John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Suite 2300, Boston, Massachusetts 02210, to determine: (1) whether the proposed Settlement of the Class’s claims against the Defendants for $15,000,000.00 cash and 2 million Settlement Warrants should be approved as fair, reasonable and adequate; (2) whether the proposed Plan of Allocation is fair, just, reasonable, and adequate; (3) whether the Court should permanently enjoin the assertion of any claims that arise from or relate to the subject matter of the Action; (4) whether the Action should be dismissed with prejudice against the Defendants as set forth in the Stipulation of Settlement filed with the Court; (5) whether the application by Class Counsel for an award of attorneys’ fees and expenses should be approved; and (6) whether the Class Plaintiffs’ application for reimbursement of costs and expenses should be granted.

If you purchased AVEO common stock during the Class Period, your rights may be affected by the Settlement of this Action. If you have not received a detailed Notice of Pendency and Settlement of Class Action (the “Notice”) and a copy of the Proof of Claim and Release form, you may obtain copies by writing to the Settlement Administrator at AVEO Securities Litigation, Settlement Administrator, PO Box 5110, Portland, OR 97208-5110, or by phone at (855) 367-5403, or by email at info@AVEOSecuritiesLitigation.com, or by visiting www.AVEOSecuritiesLitigation.com.

If you are a member of the Class, in order to share from the distribution of the Net Settlement Fund, you must timely submit a Proof of Claim to the Settlement Administrator’s address provided above and postmarked on or before May 29, 2018. If you are a member of the Class and do not submit a proper Proof of Claim, you will not share in the distribution of the Net Settlement Fund, but you will be bound by any judgment or orders entered by the Court.

If you want to exclude yourself from the Class, you must submit a request for exclusion to the Settlement Administrator at the address above postmarked on or before May 16, 2018, in the manner and form detailed in the Notice. If you properly exclude yourself from the Class, you will not be bound by any judgment or orders entered by the Court in the Action, and you will not be eligible to share in the proceeds of the Settlement.

If you have any objection to the proposed Settlement, the adequacy of representation provided by Class Plaintiffs and/or Class Counsel, the proposed Plan of Allocation of the Net Settlement Fund, the Final Order and Judgment contemplated by the Stipulation, the application for attorneys’ fees not to exceed 30% of the Settlement Amount, and reimbursement of expenses not to exceed $400,000, and/or the application of a Compensatory Award, not to exceed $5,000 each, for the time and expenses incurred by Class Plaintiffs, or if you otherwise wish to be heard with respect to any of the foregoing, you may appear in person or by attorney at the Final Approval Hearing. Notice of objection or appearance must be filed in the manner detailed in the Notice with the Clerk of the Court and delivered to Class Counsel and Defendants’ Counsel, such that it is received by each party no later than May 16, 2018, in accordance with the instructions set forth in the Notice.

All members of the Class who do not request exclusion therefrom, in the manner provided in the Notice, will be represented by Class Counsel in connection with the Settlement, but may, if they so desire, also enter an appearance through counsel of their own choice at their own expense.

INQUIRIES SHOULD NOT BE DIRECTED TO THE COURT, THE CLERK’S OFFICE, THE DEFENDANTS, OR DEFENDANTS’ COUNSEL. Any questions should be directed to:

Settlement Administrator
AVEO Securities Litigation
c/o Epiq
Settlement Administrator
PO Box 5110
Portland, OR 97208-5110
(855) 367-5403
info@AVEOSecuritiesLitigation.com
www.AVEOSecuritiesLitigation.com

Class Counsel
Joshua B. Silverman
Pomerantz LLP
10 South LaSalle Street, Suite 3505
Chicago, IL 60603
(312) 377-1181
jbsilverman@pomlaw.com

Dated: February 28, 2018  

By Order of the Court

United States District Court District of Massachusetts

Contacts

Pomerantz LLP
Joshua B. Silverman, 312-377-1181