Facts

Plaintiffs, individual Sequenom Inc. shareholders, filed a derivative suit on behalf Sequenom against certain of its current and/or former officers and directors.

PLAINTIFFS' CONTENTIONS:
The shareholders alleged that certain current and former Sequenom officers and directors caused substantial monetary losses and other damages to the company by breaching their fiduciary duties. Plaintiffs alleged that research and development testing results, for a new diagnostic technology, were skewed and misrepresented by defendants.

DEFENDANTS' CONTENTIONS:
Defendants denied all allegations of wrongdoing or liability.

Result

The parties reached a settlement, resulting in a $14 million benefit to the company to assist in settling a related federal securities action, and requiring Sequenom to implement corporate governance reforms, which will help ensure the accuracy of publicly-disseminated information and revise clinical study protocols and procedures.

Other Information

According to plaintiffs counsel, certain Sequenom executives, who were directly involved in the alleged wrongdoing, were terminated or resigned as a direct result of the litigation.