PureCycle Technologies (PCT) said a US District Court granted preliminary approval of a settlement to resolve shareholder derivative lawsuits and certain shareholder demand letters.

The court in the district of Delaware issued the order on Feb. 18., the company said Friday in a statement.

The settlement includes corporate governance reforms and a $3 million payment by insurers to PureCycle, according to a notice filed with the US Securities and Exchange Commission,

The governance changes involve expanding the board with two independent members, formalizing committee structures and improving compliance and disclosure policies, according to the notice.

A court hearing on the settlement is scheduled for May 1.

Shares of the company rose 3.7% in recent Friday trading.

Price: 9.56, Change: +0.34, Percent Change: +3.69