Arcturus Therapeutics comments on court ruling on former CEO 13D situation
Arcturus Therapeutics announced that the United States District Court for the Southern District of California has granted a preliminary injunction to compel former President and CEO, Joseph Payne, to comply with and prevent violations of Section 13(d) of the Exchange Act and Regulation 13D. As a result of the injunction, Payne is required to amend his Schedule 13D by June 1, 2018 to redress his violations of these disclosure and reporting rules. In its May 22, 2018 order, the Court stated: "...Arcturus is likely to prevail in showing that Defendants formed a group requiring the filing of a Schedule 13D... There is an adequate basis in the record indicating that Arcturus is likely to prevail in its claim that the Schedules 13D fail to disclose information regarding the Payne Group... Because a Schedule 13D must include a statement of the group's aggregate interest in securities of the issuer, the background and identity of the group members, and their plans and intentions with respect to the issuer, the Court finds that Arcturus is likely to prevail on its claim that Defendants' Schedules 13D failed to disclose the information required..." The company pursued this relief to protect the interests of all Arcturus shareholders and to safeguard their right to a fully informed vote at the upcoming EGM. We believe that it is in the interest of all shareholders that Payne and his associates commit to full transparency and compliance with securities laws going forward.