Drug development firm Pozen said Tuesday that it had settled a class action lawsuit filed against the company in 2004.
Terms of the settlement were not disclosed. The agreement also must still be approved by the U.S. District Court for the Middle District of North Carolina.
“The settlement agreement, which remains subject to court approval, will be funded entirely with proceeds from the company’s directors and officers’ liability insurance,” Pozen said in a statement.
Pozen was sued in two class action filings soon after the FDA rejected in June 2004 the proposed migraine drug known as MT100. The FDA had earlier rejected another Pozen migraine drug candidate known as MT300.
“All claims against the company and Dr. [John] Plachetka will be dismissed in their entirety without admission of liability or wrongdoing by any party,” Pozen said in a statement. Plachetka is Pozen’s top executive.
The consolidated shareholder lawsuit filed in Superior Court of Orange County in North Carolina was dismissed "with prejudice" in 2005.