Pomerantz LLP Announces Proposed Class Action Sett

SAN JOSE, Calif., Feb. 09, 2017 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that the United States District Court for the Northern District of California has approved the following announcement of a proposed partial class action settlement that would benefit purchasers of securities of KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO):

SUMMARY NOTICE OF PENDENCY AND PROPOSED PARTIAL SETTLEMENT OF CLASS ACTION AND SETTLEMENT HEARING

TO:     ALL PERSONS AND ENTITIES THAT PURCHASED OR OTHERWISE ACQUIRED KALOBIOS PHARMACEUTICALS, INC. (“KALOBIOS”) COMMON STOCK (STOCK SYMBOL: KBIO) BETWEEN NOVEMBER 18, 2015 AND DECEMBER 16, 2015, INCLUSIVE (THE “SETTLEMENT CLASS PERIOD”).

YOU ARE HEREBY NOTIFIED, pursuant to Federal Rule of Civil Procedure 23 and an Order of the United States District Court for the Northern District of California, that a proposed partial settlement has been reached in this action.  A hearing will be held on May 11, 2017, at 9:00 a.m., before the Honorable Edward J. Davila, United States District Judge, at the courthouse for the United States District Court, Northern District of California Courtroom 4, Robert F. Peckham Federal Building, 280 South 1 ^st Street, San Jose, CA 95113.

The purpose of the hearing is to determine, among other things: (1) whether the proposed Partial Settlement of the Class’ claims against the Settling Defendants KaloBios Pharmaceuticals, Inc. (“KaloBios”), Ronald Martell (its former Executive Chairman), and Herb Cross (its former Chief Financial Officer) for a total of consideration of one million five hundred thousand dollars ($1,500,000.00) and three hundred thousand (300,000) shares of KaloBios stock should be approved as fair, reasonable and adequate; (2) whether the Plan of Allocation is fair and reasonable and should be approved; (3) whether the application by Lead Counsel for an award of attorneys’ fees and expenses should be approved; (4) whether Plaintiffs’ application for reimbursement of costs and expenses should be granted; (5) whether Plaintiffs’ request for a compensatory award should be granted; and (6) whether the Action should be dismissed with prejudice against the Settling Defendants as set forth in the Stipulation of Settlement (the “Stipulation”) filed with the Court.

The Action is not being settled as against Defendant Martin Shkreli, against whom Plaintiffs and Lead Counsel will continue to litigate.  Lead Counsel representing Plaintiffs and the Settlement Class is Matthew L. Tuccillo, Pomerantz LLP, 600 Third Avenue, 20 ^th Floor, New York, NY 10016, (212) 661-1100. 

If you purchased or otherwise acquired KaloBios common stock between November 18, 2015 and December 16, 2015, both dates inclusive (the “Settlement Class Period”), your rights may be affected by this Action and the Partial Settlement thereof.  If you have not received the detailed Notice of Proposed Settlement of Class Action, Motion For Attorneys’ Fees and Expenses, and Settlement Fairness Hearing (the “Notice”) and the Proof of Claim and Release Form, you may obtain them free of charge by contacting the Claims Administrator via the information set forth below.

If you are a member of the Settlement Class and wish to share in the Partial Settlement proceeds, you must submit a Proof of Claim, postmarked no later than April 6, 2017, establishing that you are entitled to recovery.  As further described in the Notice, you will be bound by any Judgment entered in the Action, regardless of whether you submit a Proof of Claim, unless you exclude yourself from the Class, in accordance with the procedures set forth in the Notice, postmarked no later than April 20, 2017.  Any objections to the Partial Settlement, Plan of Allocation or Lead Counsel’s application for attorneys’ fees and expenses must be filed and served, in accordance with the procedures set forth in the Notice, no later than April 20, 2017.

The Settlement Class excludes the Settling Defendants and immediate family; certain Released Parties; past and present KaloBios directors, officers, and employees; KaloBios subsidiaries and affiliates; Defendant Shkreli, his immediate family, his investor group who acquired 70% of KaloBios stock entering the Settlement Class Period, and others who acquired KaloBios stock and/or were appointed as KaloBios officers and directors in conjunction with Mr. Shkreli’s takeover of the company.  Additional details are listed in the Notice and the Stipulation, which can be obtained upon request.

Please direct inquiries, including requests for copies of the Notice, the Stipulation, and the Proof of Claim, to the Claims Administrator: 

KaloBios Pharmaceuticals, Inc. Securities Litigation c/o Strategic Claims Services 600 North Jackson Street, Suite 3 Media, PA  19063 Tel:  866-274-4004 Email:  info@strategicclaims.net www.strategicclaims.net/kalobios

INQUIRIES SHOULD NOT BE DIRECTED TO THE COURT, THE CLERK’S OFFICE, THE DEFENDANTS, OR DEFENDANTS’ COUNSEL