Item 8.01. Other Events

As previously disclosed, on June 23, 2022, a putative class action complaint was filed in Delaware Chancery Court by Ram Hari Khadka, a stockholder, against Mullen Automotive Inc. (the "Company") and its current directors, as defendants (the "Action"). The complaint alleged breaches of fiduciary duty against the defendants based on alleged disclosure deficiencies in the definitive proxy statement (the "Proxy Statement") filed by the Company on June 10, 2022, relative to the vote at the Company's 2022 Annual Meeting of Stockholders that was to be held on July 26, 2022 (the "2022 Stockholder Meeting") seeking stockholder approval of issuance of shares under the Performance Stock Award Agreement (the "CEO Performance Award") granted to David Michery, the Company's chief executive officer, president and chairman of the board of directors. The complaint sought various remedies, including a preliminary injunction seeking to enjoin the vote at the 2022 Stockholder Meeting to approve the issuance of shares for the CEO Performance Award.

As previously disclosed, the Company filed a supplement to the Proxy Statement on July 13, 2022 (the "Proxy Supplement") addressing the alleged disclosure claims to moot plaintiff's claims in the Action. On August 5, 2022, the Chancery Court approved a stipulation under which the plaintiff voluntarily dismissed the Action with prejudice as to itself only, but without prejudice as to any other putative class member. The Chancery Court retained jurisdiction solely for the purpose of adjudicating the anticipated application of plaintiff's counsel for an award of attorneys' fees and reimbursement of expenses in connection with the supplemental disclosures included in the Proxy Supplement.

The Company subsequently agreed to pay $995,000.00 to plaintiff's counsel for attorneys' fees and expenses in full satisfaction of the claim for attorneys' fees and expenses in the Action. The Chancery Court has not been asked to review, and will pass no judgment on, the payment of the attorneys' fees and expenses or their reasonableness."

Item 9.01. Financial Statements and Exhibits






(d) Exhibits.



Exhibit
No.       Description
104       Cover Page Interactive Data File (embedded within the Inline XBRL document).

© Edgar Online, source Glimpses