Common use of THE LITIGATION Clause in Contracts

THE LITIGATION. 28 This Action began with the filing of multiple initial securities class action complaints in 1 the United States District Court for the Northern District of California: (1) by Plaintiff ▇▇▇▇ ▇▇ 2 on December 18, 2015; (2) by Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ on December 23, 2015; and (3) by 3 Plaintiff ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ on December 31, 2015. These initial complaints named KaloBios 4 Pharmaceuticals, Inc. (“KaloBios”), ▇▇▇▇▇▇▇, and ▇▇▇▇▇ ▇▇▇▇▇ (“▇▇▇▇▇”) as defendants. Each 5 complaint asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 6 (the “Exchange Act”), 15 U.S.C. §§ 78j(b), and 78t(a), and Rule 10b-5 promulgated thereunder 7 by the Securities and Exchange Commission (“SEC”), 17 C.F.R. § 240.10b-5, alleging that 8 Defendants made material misstatements and omissions concerning ▇▇▇▇▇▇▇▇’s business 9 operations and prospects between November 19, 2015 and December 16, 2015. Defendant 10 ▇▇▇▇▇▇▇ denies the allegations in these complaints.

THE LITIGATION. 28 This 3 Following the arrest of Defendant ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (“▇▇▇▇▇▇▇”) on December 17, 2015, this 4 Action began with the filing of multiple initial securities class action complaints in 1 the United 5 States District Court for the Northern District of California: (1) by Plaintiff ▇▇▇▇ ▇▇ 2 on December 18, 2015; (2) by 7 Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ on December 23, 2015; and (3) by 3 Plaintiff ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ on December 31, 2015. These initial complaints named KaloBios 4 PharmaceuticalsDefendants KaloBios, Inc. (“KaloBios”), 8 ▇▇▇▇▇▇▇, and ▇▇▇▇▇ ▇▇▇▇▇ (“▇▇▇▇▇”) as defendants). Each 5 complaint asserted claims under Sections 10(b) and 20(a) of the 9 Securities Exchange Act of 1934 6 (the “Exchange Act”), 15 U.S.C. §§ 78j(b), and 78t(a), and Rule 10 10b-5 promulgated thereunder 7 by the Securities and Exchange Commission (“SEC”), 17 C.F.R. § 11 240.10b-5, alleging that 8 Defendants made material misstatements and omissions concerning ▇▇▇▇▇▇▇▇12 KaloBios’s business 9 operations and prospects between November 19, 2015 and December 16, 13 2015. Defendant 10 ▇▇▇▇▇▇▇ denies The Settling Defendants deny the allegations in these complaints.

THE LITIGATION. 28 This 3 Following the arrest of Defendant ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (“▇▇▇▇▇▇▇”) on December 17, 2015, this 4 Action began with the filing of multiple initial securities class action complaints in 1 the United States District Court ▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ for the Northern District of California: (1) by Plaintiff ▇▇▇▇ ▇▇ 2 on December 18, 2015; (2) by 7 Plaintiff ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ on December 23, 2015; and (3) by 3 Plaintiff ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ on December 31, 2015. These initial complaints named KaloBios 4 PharmaceuticalsDefendants KaloBios, Inc. (“KaloBios”), 8 ▇▇▇▇▇▇▇, and ▇▇▇▇▇ ▇▇▇▇▇ (“▇▇▇▇▇”) as defendants). Each 5 complaint asserted claims under Sections 10(b) and 20(a) of the 9 Securities Exchange Act of 1934 6 (the “Exchange Act”), 15 U.S.C. §§ 78j(b), and 78t(a), and Rule 10 10b-5 promulgated thereunder 7 by the Securities and Exchange Commission (“SEC”), 17 C.F.R. § 11 240.10b-5, alleging that 8 Defendants made material misstatements and omissions concerning ▇▇▇▇▇▇▇▇12 KaloBios’s business 9 operations and prospects between November 19, 2015 and December 16, 13 2015. Defendant 10 ▇▇▇▇▇▇▇ denies The Settling Defendants deny the allegations in these complaints.