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Castlight Health announces director resignation, class action settlement

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Castlight Health announces director resignation, class action settlement

Castlight HealthInc. director S. Steven Singh on March 28 told the board he was resigning,effective immediately, according to a Form 8-K filed April 1.

His decision was not, to the knowledge of management, a resultof any disagreement with the company or its operations, policies or practices. Singhis leaving to focus on his expanded commitments to SAP SE.

Following his departure, the board approved a decrease in thesize of the board to six members from seven. David Singer, a class III director,became a class II director with a term expiring at the company's 2016 annual meetingin order to rebalance the class distribution on the board.

According to the same Form 8-K, Castlight and other parties toa consolidated class action against the company, certain of its directors and executives,significant stockholders and underwriters of its IPO reached a mutually acceptableresolution through a mediated cash settlement of $9.5 million. Castlight will contribute$800,000, while its directors and officers liability insurance will cover the rest.Castlight intends to pay the $1.9 million remaining balance of its self-insuredretention, or deductible portion under its insurance policy, during the quarterended June 30.

The companybelieves it has meritorious defenses to the litigation, but it is satisfied withthe resolution given the risks and expenses associated with further litigation.The settlement issubject to final documentation and court approval.