UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 27, 2008 (August 21, 2008)
King Pharmaceuticals, Inc.
(Exact name of registrant as specified in charter)
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Tennessee
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001-15875
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54-1684963 |
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer |
of incorporation)
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File Number)
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Identification No.) |
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501 Fifth Street, Bristol, Tennessee
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37620 |
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(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code: (423) 989-8000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 1.01. |
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Entry into a Material Definitive Agreement. |
On August 21, 2008, a Stipulation of Settlement (the Settlement Agreement) was entered into
in connection with a certain consolidated shareholder derivative action entitled In Re: King
Pharmaceuticals, Inc. Derivative Litigation (the Derivative Action) in the Chancery Court for
Sullivan County at Bristol, Tennessee (the Court). The Derivative Action alleged a breach of
fiduciary duty, among other things, by certain former officers and
certain current and former directors of
King Pharmaceuticals, Inc. (the Company). For a full listing of the parties to the Derivative
Action please refer to Exhibit 10.1 hereto. The Settlement Agreement is subject to Court approval.
In consideration for the full settlement and release of all Released Claims (as defined in the
Settlement Agreement), the Settlement Agreement provides for the maintenance by the Company of
various existing corporate governance processes and the adoption and maintenance of others,
specified therein. In addition, the Settlement Agreement calls for the payment by the Company of
$13.5 million in the aggregate for attorneys fees for plaintiffs counsel. This amount will be
paid on the Companys behalf by its insurance carriers.
The foregoing does not constitute a complete summary of the terms of the Settlement Agreement
and reference is made to the complete text of the Settlement Agreement which is attached hereto as
Exhibit 10.1 and is incorporated herein by reference.
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Item 9.01 |
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Financial Statements and Exhibits. |
(d) Exhibits
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10.1 |
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Stipulation of Settlement dated August 21, 2008. |