Proposed Settlement

A conditional settlement, subject to the approval of the Court, of AUD$38 million (Settlement Sum), inclusive of legal fees, expenses, disbursements, any funding commission, and interest, to resolve the claims of all Group Members has been reached in the Mayne Pharma Class Action (Proposed Settlement).

Class action settlements, including this Proposed Settlement, are subject to approval by the Supreme Court of Victoria. The Court will have a hearing at 10:30am AEDT on 8 November 2024 to consider whether to approve the Proposed Settlement as fair and reasonable and in the interests of all Group Members.

Notice of Proposed Settlement

Key information regarding the proposed settlement is available in the Notice of Proposed Settlement that has been approved by the Court. All Group Members in the Mayne Pharma Class Action should read the Notice of Proposed Settlement as it contains important information about the Proposed Settlement and may affect their legal rights.

Notice of Estimated Distribution

Pursuant to the orders of the Court dated 22 August 2024, all registered Group Members will receive a Notice of Estimated Distribution. The Notice of Estimated Distribution will contain the registered Group Member’s name, unique identification number, a confirmation of trading data, and an indicative estimate of the registered Group Member’s entitlement to compensation under the Proposed Settlement.

Any request for review of the Notice of Estimated Distribution must be returned to Phi Finney McDonald (with any supporting documentation) by 4:00pm AEST on 18 September 2024:

By mail: Phi Finney McDonald                OR       By email: maynepharma@phifinneymcdonald.com
Level 3, 325 Flinders Lane
Melbourne VIC 3000
Australia

Unregistered Group Members

The Court has made orders that only those Group Members who registered their claim with Phi Finney McDonald by 4:00pm AEST on 28 June 2023 or are listed in Confidential Annexure A to Court orders made on 22 August 2024 are eligible to participate in the Proposed Settlement.

Unregistered Group Members who wish to seek permission from the Court to participate in the Proposed Settlement must identify the basis on which they think they should be granted permission and provide evidence (by way of affidavit) in support of their application for permission and any written submissions (of no more than 2 pages in length) by email to Phi Finney McDonald at maynepharma@phifinneymcdonald.com.

The Court ordered deadline to submit an application for permission to participate in the Proposed Settlement is 4:00pm AEDT on 11 October 2024.

Objecting to the Proposed Settlement

Any Group Member in the Mayne Pharma Class Action who wishes to object to the Proposed Settlement must complete a Notice of Objection (attached as Schedule 1 to the Notice of Proposed Settlement) and send it along with evidence (by way of affidavit) in support of the objection and any written submissions (of no more than 2 pages in length) to the Supreme Court of Victoria via maynepharmaclassaction@supcourt.vic.gov.au

The Court-ordered deadline to submit an objection to the Proposed Settlement is 4:00pm AEDT on 11 October 2024.

Background to the Mayne Pharma Class Action

The Mayne Pharma Class Action follows the announcement on 15 December 2016 that the Attorney General of Connecticut had commenced anti-trust civil proceedings against a number of pharmaceutical companies, including Mayne Pharma’s US subsidiary. It is alleged in that proceeding that Mayne Pharma’s US subsidiary, along with other defendants, participated in a conspiracy to restrain trade, inflate the price of generic pharmaceuticals, and reduce competition.

The market responded strongly to this information, with Mayne Pharma’s share price falling around 10% over the following trading days.

The details of the allegations in the class action are set out in the Amended Statement of Claim. In summary the Plaintiff alleges that Mayne Pharma:

• contravened its continuous disclosure obligations during the Claim Period by failing to properly inform the market about alleged discussions and agreements its US subsidiary had with Heritage Pharmaceuticals in relation to sales of a product called “Doxy DR”, which were or could be regarded as anti-competitive and contrary to US law, and that subpoenas had been issued by US regulators; and
• engaged in misleading or deceptive conduct during the Claim Period by maintaining public representations that Mayne was compliant with competition law, had appropriate systems for ensuring compliance, and was not exposed to the risk of reputational, financial or other impacts in the US for non-compliance with competition law

The Mayne Pharma Class Action alleges that investors who acquired an interest in fully paid ordinary shares during the Claim Period are entitled to compensation for loss and damage as they paid more for those shares than they would have paid as a consequence of Mayne Pharma’s conduct. The Mayne Pharma Class Action also alleges that some Group Members would not have purchased Mayne Pharma shares if Mayne Pharma had complied with its obligations.