Faruqi & Faruqi, LLP Announces Preliminary Approval of a Settlement on Behalf of DPW Holdings, Inc. and its Shareholders

Alex B. Heller Alex B. Heller

Tel: (215) 277-5770
Fax: (215) 277-5771
E-mail: aheller@faruqilaw.com

Christopher M. Lash Christopher M. Lash

Tel: (215) 277-5770
Fax: (215) 277-5771
E-mail: clash@faruqilaw.com

Faruqi & Faruqi, LLP, sole lead counsel, is pleased to announce that the Court has preliminarily approved a settlement in Ethan Young et al. v. Milton C. Ault, III et al., No. 2:18-6587-PA (C.D. Cal.), a shareholder derivative action brought on behalf of DPW Holdings, Inc. (“DPW”).  The settlement provides for DPW’s Board of Directors to implement corporate governance reforms including: (1) removal of a non-independent director from DPW’s Board of Directors and appointment of two new independent directors, so that the board is composed of five independent directors and two non-independent directors; (2) instituting heightened independence requirements for directors to qualify as independent; (3) appointing two new independent directors to a three-member Governance Committee, which will be charged with reviewing related party transactions in accordance with a newly created related party transaction policy; (4) instituting an enhanced definition for identifying related parties; (5) tasking the Governance Committee with reviewing DPW’s issuance of stock; (6) requiring DPW’s Audit Committee to review all debt financing, including loans and future receipts agreements, and (7) amending DPW’s Bylaws, Audit Committee Charter, whistle-blower policy, and compensation clawback policy.  A final approval hearing on the settlement is scheduled for June 29, 2020, at 1:30 p.m.  Notice of the terms of this settlement will be provided to DPW shareholders in a manner approved by the Court.  A copy of the Court’s order preliminarily approving the settlement can be found at the link below.

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