The action was brought derivatively on behalf of nominal defendant Aqua Metals, Inc. (“Aqua Metals”) and alleges that certain officers and directors violated the federal securities laws and breached their fiduciary duties by making or permitting the Company to make materially false statements or omissions, causing the Company to fail to maintain internal controls, and committing other violations of state and federal law with respect to the Company’s AquaRefining technology, a novel process of recycling lead.
Hynes & Hernandez, LLC, acting as Co-Lead Counsel, secured a settlement that guarantees Aqua Metals substantial benefits in the form of corporate governance reforms, which improve the Company’s internal controls and address the alleged deficiencies that resulted in the alleged wrongdoing. In particular, the reforms provide for the appointment of a new independent director, separation of the Chairman of the Board and Chief Executive Officer positions, creation of a new executive-level disclosure committee (“DC”) and DC charter, implementation of a new formal whistleblower policy, enhanced meeting requirements for certain members of the Board and its committees, and increased director education.