Schrodinger (SDGR) shares were up Friday after the company said it settled a lawsuit regarding compensation practices for its non-employee directors.
The scientific software company said in a regulatory filing that on March 25 it entered into a stipulation of compromise and settlement with a stockholder to resolve a derivative action filed in New York that challenged its compensation practices.
Under the terms of the settlement, Schrodinger said it has agreed to enact and keep certain corporate governance reforms related to non-employee director compensation for a period of time. The company also agreed to pay $390,000 in attorneys' fees and expenses to plaintiff's counsel. The settlement also provides for a release of claims without any admission of wrongdoing, according to the filing.
The settlement of the derivative action remains subject to court approval, the company said.
Schrodinger didn't immediately respond to a request for comment from MT Newswires.
Shares were up more than 21% in recent trading.
Price: 23.40, Change: +4.18, Percent Change: +21.75
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