Blog Exposure – Arcturus Initiates Lawsuit against Former CEO Joseph Payne for Misconduct and Violations of Federal Disclosure

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LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free research report on Arcturus Therapeutics Ltd (NASDAQ: ARCT) (“Arcturus”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ARCT as the Company’s latest news hit the wire. On April 20, 2018, the Company announced that it has filed a lawsuit in the United States District Court for the Southern District of California against its former President and Chief Exeutive Officer (CEO), Joseph E. Payne, and his associates, Bradley Sorenson, Peter Farrell, and Andrew Sassine (collectively, with other unknown shareholders, the “Payne Group”), for multiple violations of federal disclosure and reporting rules under Section 13(d) of the Exchange Act and Regulation 13D. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Arcturus Seeking Damages and Injunctive Relief

The lawsuit seeks injunctive relief to compel the Payne Group to comply with Regulation 13D and prevent Payne and the other Defendants from future violations of Section 13(d) of the Exchange Act. The filing also outlines how Payne has illegally and secretly colluded with multiple shareholders to support his vindictive campaign to replace the full Board of Directors of Arcturus. The lawsuit seeks to prevent Payne and his associates from continuing to mislead the voting shareholders of Arcturus leading up to the next extraordinary general meeting of shareholders.

Details of the Complaint

The Company alleged that Payne, following his termination, has illegally organized a group of shareholders in support of his proxy campaign and repeatedly violated securities laws in an attempt to mislead Arcturus and its investors. He formed an Undisclosed Beneficial Ownership Group to change or influence the control of Arcturus. Payne is actively communicating, organizing, and colluding with the Payne Group in an effort to take control of the Arcturus Board.
Payne has failed to make required public filings and made illegally incomplete, inaccurate, or misleading public filings by failing to disclose the existence of the Payne Group, the identities of the members of the Payne Group, and the accompanying beneficial ownership of the Company’s securities held by such members, in direct violation of Section 13(d) of the Exchange Act and SEC Rules 13d-1, 13d-2, and 13d-5.
The Payne Group has engaged in a concerted campaign of disruption and interference that has caused uncertainty with respect to Arcturus meeting its public company reporting obligations. Despite his continuing fiduciary duties as a Company Director, and his prior vote to support the proposal as a member of the Arcturus Board, Payne colluded with the Payne Group to vote against one of the most routine, yet essential resolutions for a public company, which is the ratification of the appointment of its independent auditors. The Payne Group’s destructive actions resulted in the failure of the ratification, leading to a potential delisting from the NASDAQ Exchange, as well as possible sanctions by the Securities and Exchange Commission (SEC).

Arcturus’ First Lawsuit against Payne

The Company initiated a lawsuit against Payne in the San Diego Superior Court on March 27, 2018. The lawsuit outlined Payne’s multiple alleged misconducts, including operating an undisclosed, unauthorized, and lucrative side business during business hours, and misrepresenting material information and attempting to transfer Arcturus’ intellectual property for no apparent reason. During his tenure, Payne also retaliated against the Board and engaged in a campaign to convince other shareholders to arbitrarily reject the Company’s independent auditor.

Payne’s Dismissal

On February 01, 2018, Arcturus announced that it fired Payne after he demonstrated that he was unable to put the needs of the Company and its shareholders ahead of his own self-interest. His misconduct, poor judgment, and failed leadership led to his termination as CEO. On February 06, 2018, Payne filed a 13D disclosing a 13.7% stake in the Company and claiming that his termination was unauthorized and should be rescinded. Payne expressed his intention to discuss the situation with certain shareholders with the objective of replacing unnamed directors and executives.

About Arcturus Therapeutics Ltd

Founded in 2013 and headquartered in San Diego, California, Arcturus is a leader in the application of RNA technologies for the treatment of disease and improved quality of life. The Company’s aim is to develop breakthrough technology and novel therapeutics for rare diseases for which there is no adequate treatment.

Stock Performance Snapshot

April 23, 2018 – At Monday’s closing bell, Arcturus Therapeutics’ stock declined 1.16%, ending the trading session at $5.11.

Volume traded for the day: 68.18 thousand shares, which was above the 3-month average volume of 57.44 thousand shares.

After yesterday’s close, Arcturus Therapeutics’ market cap was at $60.20 million.

The stock is part of the Healthcare sector, categorized under the Biotechnology industry. This sector was up 0.1% at the end of the session.

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