In re RenovaCare Derivative Litigation, Case No. 2:21-cv-20569 (D.N.J.). Johnson Fistel, as co-lead counsel in a shareholder derivative action pending in the U.S. District Court for the District of New Jersey, alongside counsel in related actions pending in Arizona and Nevada, on behalf of RenovaCare, Inc. (“RenovaCare” or the “Company”), helped RenovaCare negotiate a settlement whereby the Company’s founder extinguished any and all debt owed to him by RenovaCare as of the date the execution of the settlement agreement by the parties, an elimination of more than $5 million in debt from RenovaCare’s balance sheet.
Additionally, as part of the Settlement, if and when Renovacare reconstitutes a Board of Directors, a majority of the board members will be independent, such that a majority of the board members (i) do not have a material relationship with the Company; (ii) are not a part of the Company’s executive team; and (iii) are not involved in the day-to-day operations of the Company.
The Settlement terms are designed to, among other things, position the Company to raise capital with a clean balance sheet by eliminating more than $5 million owed to defendant Rayat by the Company so that it may continue as a viable ongoing publicly traded entity, in addition to ensuring independent representation on the reconstituted board.
On April 22, 2025, the Honorable Timothy C. Williams entered an order finally approving the settlement and resolving all derivative claims.
Michael I. Fistel, Jr. led the prosecution of the litigation for Johnson Fistel, and along with co-lead counsel, helped to achieve this excellent result on behalf of RenovaCare.
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