Blockchain payments firm Ryvyl Inc. has struck a settlement with investors to end a derivative lawsuit accusing the company’s leadership of hiding accounting problems that sent its stock price tumbling and inflicted financial damage on the business.
Court Says Negotiations Appeared Fair
U.S. District Judge Gonzalo P. Curiel issued a preliminary blessing Friday, finding the parties’ negotiations appeared fair and transparent. A final approval hearing is slated for Jan. 9, according to the court order.
The deal requires the San Diego-based fintech company to overhaul its governance — adding an independent director, creating a risk and disclosure committee, and implementing enhanced risk-assessment training for employees. These corporate reforms must remain in place for at least three years.
“Meant to Become Embedded,” Judge Says
Judge Curiel wrote that these structural changes are expected to deliver “substantial benefits” to the company and are designed to stay in place long enough to root themselves in Ryvyl’s corporate culture.
“The reforms’ benefits are bolstered by the fact that Ryvyl will implement and maintain the reforms for three years following the effective date of the settlement,” the order states. “This is meant to be a sufficient time for the reforms to become embedded in the company’s policies, practices, and corporate culture.”
