MSP Recovery announces $2.9 million in confidential settlements

MSP Recovery, Inc. (NASDAQ:MSPR) reported Friday that it has entered into confidential settlement agreements totaling $2.9 million in cash. The settlements, disclosed in a press release statement and detailed in a filing with the Securities and Exchange Commission, involve both a property and casualty insurer and a pharmaceutical manufacturer. According to InvestingPro data, these settlements come at a crucial time for the company, which currently operates with a market capitalization of just $2 million and faces significant cash burn challenges.

According to the company, the first agreement is a mediated settlement with an unnamed property and casualty insurer. The terms, which remain confidential, include the insurer providing historical data for claimants and assisting MSP Recovery in reconciling relevant Medicare claims, both current and future. The agreement also outlines a cooperative process, or binding mediation, to resolve relevant Medicare claims owned by the company, as well as a cash payment from the insurer to settle existing historical claims.

The second settlement involves a pharmaceutical defendant in a litigation case alleging overpayments related to a prescription drug scheme. The details of this settlement, including the identity of the manufacturer and specific terms, were not disclosed.

MSP Recovery stated that portions of the settlement proceeds from these preliminary agreements will be distributed according to existing company agreements. The company did not provide further details regarding the allocation of funds or the impact on its financial statements.

MSP Recovery’s Class A common stock and redeemable warrants are listed on the Nasdaq Capital Market under the symbols NASDAQ:MSPR, NASDAQ:MSPRW, and NASDAQ:MSPRZ.

The information in this article is based on a press release statement and the company’s SEC filing.

In other recent news, MSP Recovery announced that its stockholders have approved two significant proposals during a special meeting. These proposals include a reverse stock split and the issuance of new stock, as reported in a recent SEC filing. Approximately 74.74% of the company’s common stock was represented at the meeting, with each share having one vote. These developments are part of MSP Recovery’s ongoing efforts to manage its stock and financial strategy. The approval of these measures indicates a strong level of shareholder engagement and support for the company’s plans. While the details of the reverse stock split and stock issuance were not specified, such actions are often aimed at adjusting the stock price and capital structure. This move could potentially influence the company’s future financial positioning. Investors and analysts will likely be watching how these changes impact MSP Recovery’s market performance in the coming months.

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