In Re Delcath Systems, Inc. Securities Litigation

Frequently Asked Questions

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General Information

1.      What is this lawsuit about?

The Settlement resolves a lawsuit over whether Delcath misled investors about the outcome of clinical trials for its principal product, the Melblez Kit. The Settlement will provide $8,500,000 to pay claims for investors who bought Delcath common stock between April 21, 2010 and May 2, 2013.

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2.      Why is there a Settlement?

The Court did not decide in favor of the Lead Plaintiffs or Defendants. Instead, both sides agreed to a Settlement. This permits the parties to avoid the cost, delay, and uncertainty of a trial, and permits eligible Class Members who submit valid claims to receive some compensation rather than risk ultimately receiving nothing.

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3.      What is a class action?

A class action is a type of lawsuit in which one or several individuals or entities prosecute claims on behalf of all members of a group of similarly-situated persons and entities to obtain monetary or other relief for the benefit of the entire group. Class actions avoid the necessity of each member of a class having to file his, her, or its own separate lawsuit to obtain relief. Class actions are used to decide legal and factual issues that are common to all members of a class.

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4.      Why did I receive a Notice?

You or someone in your family may have purchased or otherwise acquired Delcath common stock during the Class Period April 21, 2010 through May 2, 2013.

As a potential Class Member, you have a right to know about your options under the Court approved Settlement.

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5.      Who is considered a Class Member?

All persons or entities that purchased or otherwise acquired Delcath common stock between (i) April 21, 2010 and April 29, 2013, and held as of the end of trading on April 29, 2013; and (ii) April 30, 2013 through May 2, 2013, and held as of the end of trading on May 2, 2013.

Excluded from the Class are the following and their immediate family members:

  • Defendants;
  • all current and former directors and officers of Delcath during the Class Period; and
  • any family member, trust, company, entity or affiliate controlled or owned by any of the excluded persons and entities referenced above.

If you are still not sure whether you are included, you can ask for free help. You can contact your broker or the Settlement Administrator at (888) 470-0243 for more information.

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6.      What will I receive from the Settlement?

Pursuant to the Settlement, the Defendants have agreed to pay $8,500,000. The balance of this fund, after payment of Court-approved attorneys’ fees and expenses, the costs of claims administration, and any incentive award granted to the Lead Plaintiffs (the “Net Settlement Fund”), will be allocated on a pro rata basis among all eligible Class Members who sent in valid claim forms according to the Plan of Allocation set forth in the Notice.

Your share of the Net Settlement Fund will depend on the number of Delcath shares that you purchased or otherwise acquired between (i) April 21, 2010 and April 29, 2013, and continued to hold as of the end of trading on April 29, 2013 (the day before the FDA Briefing Book was posted); and (ii) April 30, 2013 through May 2, 2013 and held as of the end of trading on May 2, 2013 (the day before the FDA Advisory Panel voted to recommend rejection of Delcath’s application to market the Melblez Kit); and the number of Delcath shares similarly purchased or acquired and held by other Class Members who file valid claims. You will not receive a payment, however, if your proportionate share of the Net Settlement Fund is less than $10.00.

You can refer to the Notice for more details and the proposed Plan of Allocation.

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7.      Do I have a Lawyer in this case?

The Court appointed the law firm Pomerantz LLP to represent you and other Class Members. These lawyers are referred to as Class Counsel. You will not be personally liable for the fees and expenses incurred by these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

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8.      What are my rights as a Class Member?

You had the right to submit a claim, to object, exclude yourself from the Settlement, or do nothing. All deadlines have since passed.

These rights are further explained in the Notice.

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9.      How do I participate in the Settlement?

To have qualified for payment, you must be an eligible Class Member, sent in a valid Proof of Claim and Release form by November 6, 2015 and properly documented your claim as requested in the Proof of Claim Form.

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10.      If I decide to file a claim, when will I receive payment?

Payment was issued on April 19, 2016 to Authorized Claimants as approved by the Court.

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11.      How do I exclude myself from the Settlement?

The deadline to have excluded yourself from the Settlement has passed.

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12.      If I exclude myself, can I receive money from the Net Settlement Fund?

If you excluded yourself, you are not eligible to receive money from the Net Settlement Fund.

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13.      Can I object to the Settlement, Fees and other matters?

The deadline to object to the Settlement has passed.

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14.      What are acceptable forms of supporting documentation?

Acceptable supporting documentation includes trade confirmations, official monthly, quarterly or year-end broker statements or other account statements to verify purchases, sales or beginning or ending holdings. Include documentation to support each transaction. Stock certificates may be used to support the amount of shares held at the beginning or end of the class period, but they are not evidence for when and how much the shares were purchased.

In the case that you cannot locate your supporting documentation, you can ask your broker to write a letter on letterhead detailing purchases, sales and beginning and ending holdings.

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15.      How do I update my contact information?

If your address changes from the address to which the Notice was directed, you must notify the Claims Administrator of your new address as soon as possible.

Please send a request to update your contact information, including your old address, new address, and new telephone number to the Claims Administrator at the address listed below:

In Re Delcath Systems Inc. Securities Litigation
c/o GCG
PO Box 10189
Dublin, OH 43017-3189
(888) 470-0243

You may also send the request via email to the Claims Administrator at

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16.      Where can I get additional information on the Settlement?

The Notice summarizes the proposed Settlement. More details are in the Stipulation. Both can be found on this website.

You may also call 1-888-470-0243 or email the Claims Administrator at If you have any questions about the settlement, you may also contact Class Counsel:

Robert Willoughby
Investor Relation Manager
Pomerantz LLP
600 Third Avenue
New York, NY 10016
Tel: (212) 661-1100

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