Rain Oncology $7.25M Securities Class Action Settlement

Investors who purchased Rain Oncology Inc. publicly traded common stock between April 23, 2021, and May 19, 2023, may be eligible to claim a cash payment from a class action settlement.

Rain Oncology Inc. agreed to pay $7.25 million to settle a class action lawsuit alleging it made false and misleading statements and omissions regarding the development and commercialization of its drug candidate milademetan.

Who can file a claim?

The settlement class includes:

• Investors who purchased or otherwise acquired Rain Oncology Inc. publicly traded common stock between April 23, 2021, and May 19, 2023.
• Investors who purchased Rain Oncology Inc. common stock pursuant or traceable to the company’s April 23, 2021, initial public offering registration statement and were allegedly damaged.

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.

How much can class members get?

The total settlement fund is $7,250,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired 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 share may be approximately $0.91 before deductions for taxes, notice and administration costs, and attorneys’ fees and expenses.
• Actual payments may be higher or lower depending on individual transactions 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 purchase and sale timing:
• For shares sold before or on May 19, 2023, the recognized loss is $0.
• For shares held as of the close of trading on May 19, 2023, the recognized loss equals the number of shares held multiplied by $8.71.

• 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.

Proof or documentation required to submit a claim

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 April 20, 2026.

Settlement administrator's mailing address: Strategic Claims Services, 600 N. Jackson St., Suite 205, P.O. Box 230, Media, PA 19063

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, including:

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

Claimants must provide documentation to support their transactions in Rain Oncology Inc. common stock. 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

Claimants must also provide proof of holdings at the beginning and end of the relevant periods. Self-generated emails or spreadsheets are not sufficient.

Payout options

• Physical check

$7.25 million settlement fund

The $7,250,000 settlement fund includes:

• Settlement administration costs: Up to $300,000
• Attorneys’ fees: Up to $1,812,500
• Attorneys’ expenses: Up to $75,000
• Service awards to class representatives: Up to $15,000 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: March 5, 2026
• Final approval hearing: April 2, 2026
• Deadline to file a claim: April 20, 2026

When is the Rain Oncology securities settlement payout date?

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

Why did this class action settlement happen?

The class action lawsuit alleged Rain Oncology Inc. and certain directors made false or misleading statements regarding the development and commercialization of milademetan, including disclosures related to its Phase 3 clinical trial. The plaintiffs claimed these alleged misstatements caused investors to purchase or acquire Rain Oncology shares at artificially inflated prices.

Rain Oncology denied all allegations of wrongdoing but agreed to settle to avoid the risks, costs and delays of continued litigation.

Sources

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