SELLAS Life Sciences Announces Settlement of Counterclaims Against JGB (Cayman) Newton for $6.6 Million Payment by JGB

SELLAS Life Sciences (Nasdaq:SLS) a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapies for a broad range of cancer indications, today announced that it has agreed to a settlement with JGB (Cayman) Newton (JGB) regarding Sellas’ counterclaims against JGB which were asserted in the litigation originally commenced by JGB.

As quoted in the press release:

As part of the settlement, JGB has paid SELLAS approximately $6.6 million in exchange for a full discharge of all claims and counterclaims asserted by SELLAS and JGB in the litigation. SELLAS and JGB have also agreed to terminate the debenture agreement and all related agreements, with JGB releasing all of its interests in the collateral for the debenture.

JGB filed the litigation in connection with a senior secured debenture entered into by SELLAS’ predecessor company, Galena BioPharma, Inc., prior to Galena’s reverse merger with SELLAS on December 29, 2017. Sellas’ counterclaims related to breach of contract by JGB, among other issues.

As SELLAS previously announced, on October 23, 2018, the U.S. District Court for the Southern District of New York (SDNY) entered an order granting in full SELLAS’ motion to dismiss the complaint brought by JGB in connection with the debenture. SELLAS’ counterclaims relating to breach of contract by JGB were not dismissed, as the court found SELLAS’ interpretation of the contract to be prevailing.

Click here to read the full press release.