Catalent $78M Securities Class Class Action Settlement

Investors who purchased or otherwise acquired Catalent Inc. publicly traded common stock or exchange traded call options, or sold exchange traded put options between Aug. 30, 2021, and May 7, 2023, may be eligible to claim a cash payment from a class action settlement.

Catalent Inc. agreed to pay $78 million to settle a class action lawsuit alleging it made false and misleading statements and omissions regarding manufacturing quality issues, operational conditions at its facilities and the adequacy of its financial and accounting controls.

Who can file a claim?

The settlement class includes:

• Individuals who personally purchased or otherwise acquired Catalent Inc. publicly traded common stock between Aug. 30, 2021, and May 7, 2023
• Investors who purchased exchange-traded Catalent call options or sold exchange-traded Catalent put options during the same period
• Investors whose purchases, acquisitions or sales allegedly damaged them

Additional details

• Both individuals and entities can be class members.
• Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
• Executors, administrators, guardians, legal representatives or trustees may submit claims on behalf of others and must provide proof of authority.
• Investors who held Catalent securities only through a mutual fund are not class members.

How much is the Catalent payout?

The total settlement fund is $78,000,000. The amount each class member receives depends on several factors:

• The number of valid claims filed
• The number of shares or options purchased, acquired or sold during the class period
• The timing of each investor purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per allegedly damaged share of common stock is approximately $0.61 before deductions.
• The estimated average distribution per allegedly damaged call option is approximately $0.04 before deductions.
• The estimated average distribution per allegedly damaged put option is approximately $0.14 before deductions.
• After deductions for attorneys fees, litigation expenses and administration costs:
• The estimated average distribution is approximately $0.44 per allegedly damaged share of common stock.
• The estimated average distribution is approximately $0.03 per allegedly damaged call option.
• The estimated average distribution is approximately $0.10 per allegedly damaged put option.

• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on transaction timing and security type:
• For common stock, recognized loss amounts depend on purchase and sale dates and whether the class member held shares through specific corrective disclosure periods.
• For call and put options, recognized loss amounts depend on the option type, strike price, expiration date and whether the class member purchased, sold, exercised, expired or held the option.

• The settlement administrator will cap claims for Catalent call and put options at 2% of the net settlement fund and will reduce option recoveries proportionally if option claims exceed this cap.
• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is May 26, 2026.

Settlement administrator's mailing address: Catalent Securities Settlement, c/o Epiq Class Action & Claims Solutions Inc., PO Box 2683, Portland, OR 97208-2683

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide purchase, acquisition and sale information, through Aug. 4, 2023, including:

• Trade dates
• Number of shares or options purchased, acquired or sold
• Total purchase, sale or acquisition price

Claimants must also provide documentation to support their transactions in Catalent securities. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional information found in a confirmation slip
• Other documentation the settlement administrator deems adequate

$78 million settlement fund

The $78,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $19,500,000
• Attorneys' expenses: Up to $2,000,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: May 20, 2026
• Deadline to submit a claim: May 26, 2026
• Fairness hearing: June 10, 2026

When is the Catalent securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after it completes claim processing and the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Catalent made false and misleading statements and omitted material facts about manufacturing quality, regulatory compliance and internal controls. The plaintiffs claimed these alleged misstatements caused investors to purchase or acquire Catalent securities at artificially impacted prices.

Catalent denies all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Settlement FAQ
3. Claim form