Singularity Future Technology Settles Class Action for $5.8M
Singularity Future Technology Ltd. has entered into an Amended Stipulation and Agreement of Settlement to resolve a securities class action lawsuit for an aggregate cash amount of $5.8 million. This settlement, which includes $2 million already in escrow, requires an additional $1.5 million payment within 15 days and the remaining $2.3 million within 60 days, all subject to court approval. The company stated that resolving the Class Action is in its best interests, reducing uncertainty and costs, and does not constitute an admission of wrongdoing. Additionally, at its annual meeting, shareholders re-elected two directors, ratified Audit Alliance LLP as the auditor, approved a new stock incentive plan, and granted the Board authority to implement a reverse stock split at various ratios.
Key Highlights
- Singularity Future Technology Ltd. entered into an Amended Settlement Agreement to resolve a securities class action.
- The aggregate cash settlement amount is $5,800,000, subject to Court approval.
- This includes $2,000,000 previously deposited into escrow.
- An additional $1,500,000 is due within 15 calendar days of execution.
- The remaining $2,300,000 is due within 60 days after the initial payment.
- Shareholders re-elected Xu Zhao and Jinhao Pang as Class I directors.
- Audit Alliance LLP was ratified as the independent registered public accounting firm.
- A new 2026 Incentive Plan was approved by shareholders.
- Board granted discretionary authority to effect a reverse stock split at ratios of 1-for-5, 1-for-10, or 1-for-14.
Price Impact
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