Common use of LITIGATION BACKGROUND Clause in Contracts

LITIGATION BACKGROUND. On November 19, 2004, the Class Representatives filed a Class Action Complaint against Novartis in the United States District Court for the Southern District of New York, on behalf of themselves and a nationwide class of female sales force employees of Novartis under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e) et seq. The Fourth Amended Complaint was filed on March 13, 2006. On January 16, 2007, the Class Representatives filed their Motion to Certify a Class, and on July 31, 2007, the Court granted the certification motion. On August 16, 2007, the Court issued an Amended Opinion and Order certifying the proposed class, and issued notice of court approval of class certification on December 7, 2007. The notice was addressed to all women who were employed in certain sales-related positions with Novartis in the period between July 15, 2002, and November 30, 2007. A jury trial commenced on April 7, 2010. The jury delivered a verdict on behalf of Plaintiffs on all counts and awarded compensatory and punitive damages. The trial concluded on May 19, 2010, with equitable relief and non-monetary relief to be ordered by the Court at a later date. In order to secure certain, prompt and extensive relief for the Proposed Settlement Class and to avoid the risk of future litigation and appeals, the Parties engaged in vigorous settlement negotiations. In July 2010, the Parties reached an agreement providing for the settlement of the class action and executed a Settlement Agreement (the “Agreement” or “Settlement Agreement”). The Parties agree that the Settlement is fair, reasonable and adequate and that it serves the best interest of the Proposed Settlement Class based on all the facts and circumstances.