Notice of Proposed Derivative Settlement: Mullen Automotive Inc.

BREA, Calif., Oct. 31, 2024 /PRNewswire/ -- Mullen Automotive Inc. (NASDAQ: MULN) today provided notice of proposed settlement of derivative actions and settlement hearing.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

PLEASE TAKE NOTICE that the above-captioned consolidated shareholder derivative action (the "Consolidated Derivative Action") is being settled on the terms set forth in a Stipulation and Agreement of Settlement dated August 21, 2024 (the "Stipulation").¹  Under the terms of the Stipulation, as part of the proposed Settlement, Mullen will adopt certain corporate governance enhancements.  These enhancements, which are detailed more fully in the Stipulation and Long-Form Notice, are intended to address the claims asserted in the Consolidated Derivative Action. 

The full Board reviewed the Settlement terms, and in a good faith exercise of its business judgment, approved the Settlement, finding it to be in the best interest of Mullen and its current shareholders.  Mullen acknowledges that the corporate governance enhancements confer substantial benefits upon Mullen and its current shareholders. 

Plaintiffs' Counsel intends to apply to the Court for an award of attorneys' fees and expenses not to exceed $500,000.00.  Defendants have agreed not to oppose that request. The amount of attorneys' fees and expenses will be within the sole discretion of the Court.

IF YOU WERE A RECORD OR BENEFICIAL OWNER OF MULLEN COMMON STOCK AS OF OCTOBER 11, 2024, PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY AS YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THE ABOVE-REFERENCED LITIGATION.

On January 24, 2025, at 10:00 a.m., the Court will hold the Settlement Hearing at the United States District Court for the Central District of California, 350 West 1st Street, Los Angeles, California 90012, in Courtroom 8C, before the Honorable Dolly Gee to determine whether: (i) the terms of the Settlement are fair, reasonable, and adequate and thus should be finally approved; (ii) the Fee and Expense Application should be approved; and (iii) the Consolidated Derivative Action should be dismissed with prejudice pursuant to the Stipulation.  The Court has the right to hold the Settlement Hearing telephonically or by other virtual means.

Any Mullen shareholder that objects to the Settlement shall have a right to appear and to be heard at the Settlement Hearing, provided that he, she, or it was a shareholder of record or beneficial owner as of the Record Date.  Any Mullen shareholder who satisfies this requirement may enter an appearance through counsel of such shareholder's own choosing and at such shareholder's own expense, or may appear on their own.  However, no shareholder of Mullen shall be heard at the Settlement Hearing unless, no later than twenty-one (21) calendar days before the Settlement Hearing, or by January 3, 2025, such shareholder has mailed to Plaintiffs' Counsel and Defendants' Counsel a written notice of objection containing the following information:

1. Your name, legal address, telephone number, and email (if applicable);
2. The case name and number (In re Mullen Automotive, Inc. Derivative Litigation, Case No. CV 22-05336-DMG-AGRx (C.D. Cal.));
3. Proof of being a Mullen shareholder as of the Record Date, October 11, 2024;
4. The date(s) you acquired your Mullen shares;
5. A statement of each objection being made;
6. Notice of whether you intend to appear at the Settlement Hearing (you are not required to appear to have your objection considered by the Court); and
7. Copies of any papers you intend to submit, along with the names of any witness(es) you intend to call to testify at the Settlement Hearing and the subject(s) of their testimony.

Only shareholders who have mailed valid and timely written notices of objection will be entitled to be heard at the Settlement Hearing unless the Court orders otherwise.  The Court may not consider any objection that does not substantially comply with these requirements.

Any Person who fails to object or otherwise request to be heard in the manner prescribed above will be deemed to have waived the right to object to any aspect of the Settlement as incorporated in the Stipulation or otherwise request to be heard (including the right to appeal) and will be forever barred from raising such objection or request to be heard in this or any other action or proceeding, and, unless otherwise ordered by the Court, shall be bound by the Judgment to be entered and the releases to be given pursuant to the Stipulation. 

If you have any questions about matters in this Notice, you may contact:

PLEASE DO NOT CONTACT THE COURT, CLERK'S OFFICE, OR DEFENDANTS' COUNSEL REGARDING THIS NOTICE.

SOURCE Mullen Automotive, Inc.