SquawkNews
As previously disclosed, on December 9, 2022, a securities class action, Crivellaro v. Singularity Future Technology Ltd., et al., No. 22-cv-7499-BMC, was commenced against Singularity Future Technology Ltd. (the "Company") and certain other defendants in the United States District Court for the Eastern District of New York (the "Court"), alleging violations of the federal securities laws (the "Class Action"). On December 17, 2024, the Court granted in part and denied in part the motions to dismiss filed by the Company and its former Chief Executive Officer, Yang Jie. On July 13, 2025, the Company and the lead plaintiffs entered into a Stipulation and Agreement of Settlement (the "Original Settlement Agreement"), pursuant to which the parties agreed to resolve the litigation, subject to final approval by the Court. On March 9, 2026, following a fairness hearing, the Court denied, without prejudice, the motion for final approval of the proposed settlement, denied as moot the related motions concerning attorneys’ fees, the escrow agreement and the issuance of shares pursuant to Section 3(a)(10) of the Securities Act of 1933. The Court also ordered that the previously imposed temporary restraining order remain in effect. On June 22, 2026, the Company and the lead plaintiffs entered into an Amended Stipulation and Agreement of Settlement (the "Amended Settlement Agreement"), which amends and supersedes the Original Settlement Agreement. Pursuant to the Amended Settlement Agreement and subject to approval by the Court, the Company agreed to settle the Class Action for an aggregate cash settlement amount of $5,800,000, which includes the $2,000,000 previously deposited into escrow. The Company agreed to deposit an additional $1,500,000 within 15 calendar days after execution of the Amended Settlement Agreement and receipt of the necessary wire transfer information, subject to a 15-calendar-day grace period for banking or wire-processing delays not caused by the Company and deposit the remaining $2,300,000 within 60 days after the initial payment. The Amended Settlement Agreement provides that the settlement will be subject to Court approval and, upon effectiveness, will result in the dismissal of the Class Action with prejudice and the mutual releases set forth therein, subject to customary exclusions. If the Company fails to make any required payment when due, such failure will constitute a material breach, and the plaintiffs may terminate the settlement, declare the unpaid settlement balance immediately due and payable, and enforce the Confession of Judgment executed by the Company for the unpaid balance, together with any applicable interest, costs and attorneys’ fees. The execution of the Amended Settlement Agreement does not constitute an admission by the Company of any wrongdoing, fault, or liability, and the Company does not admit any wrongdoing, fault, or liability. The Company determined that resolving the Class Action now is in its best inter