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Court grants preliminary approval for CPI Card Group lawsuit settlement

The U.S. District Court for the District of Delaware on Jan. 2 granted preliminary approval of the settlement in the stockholder derivative action that was filed in late 2017 and related to CPI Card Group Inc.'s IPO in 2015.

The settlement will resolve all claims that were or could have been asserted in the litigation. The company and the named defendants denied any liability or wrongdoing in connection with the allegations contained in the lawsuit.

The derivative action alleged that the defendants breached their fiduciary duties by making and/or causing CPI Card Group to make false and misleading statements of material fact to the investing public and failing to maintain internal controls at the company.

Under the settlement, CPI Card Group will implement certain corporate governance reforms, and the company's insurer will pay fees and expenses awarded to the plaintiff's counsel. There is no further monetary settlement, according to a Form 8-K filed by the company.