Notice of Proposed Settlement of Class Action in In Re Seragen Securities Litigation

The following statement is being issued by Pinckney, Harris & Weidinger, LLC regarding the In Re Seragen Securities Litigation.

THE COURT OF CHANCERY OF THE STATE OF DELAWARE
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SERGIO M. OLIVER, RONALD OLIVER,	Â	)	Â
EMILY OLIVER, GREGORY O. GRUSE,		)
ANN O. GRUSE, WILLIAM M.		)
STERRETT, BLACKSBURG TRANSFER		)
& STORAGE, INC., DAVID MCDANIEL,		)
WALLACE L. HUFF, and DANIEL R.		)		C.A. No. 16570-VCN
CANADA,		)
		)
Plaintiffs,		)
		)
v.		)
		)
BOSTON UNIVERSITY, JOHN R. SILBER,		)
LEON C. HIRSCH, TURI JOSEFESEN, REED		)
R. PRIOR, GERALD S.J. CASSIDY,		)
KENNETH G. CONDON, NORMAN A.		)
JACOBS, JEAN C. NICHOLS, SERAGEN, INC.,		)
SERAGEN TECHNOLOGY, INC., and		)
MARATHON BIOPHARMACEUTICALS LLC,		)
		)
Defendants.		)
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NOTICE OF PENDENCY OF CLASS ACTION, CERTIFICATION
OF CLASS, PROPOSED SETTLEMENT OF CLASS ACTION,
SETTLEMENT HEARING AND RIGHT TO APPEAR

TO	Â	ALL HOLDERS AND BENEFICIAL OWNERS OF SHARES OF COMMON
		STOCK OF SERAGEN, INC. ("SERAGEN") ON NOVEMBER 4, 1997 AND
		ON AUGUST 12, 1998 (THE "CLASS CERTIFICATION DATES")

Common shareholders of Seragen stock brought the above action ("Action") against Boston University ("BU"), John R. Silber, Gerald S. J. Cassidy, Kenneth G. Condon, Reed R. Prior, Norman A. Jacobs, Jean C. Nichols, and others. The complaint alleges that certain defendants caused Seragen to enter into "self-dealing" transactions that were unfair to Seragen's minority shareholders. The complaint also alleges that the defendants engaged in wrongdoing in connection with the August 12, 1998 ("Merger Date") merger between Seragen and Ligand Pharmaceuticals, Inc. Before commencement of trial, three Defendants – Reed Prior, Norman Jacobs and Jean Nichols – settled in exchange for $1,500,000 ("Partial Settlement"). That Partial Settlement fund was administered and paid to Class members who made valid claims.

Trial went forward in February 2005 against non-settling defendants who had not previously been dismissed from the Action ("BU Defendants"). The Court issued its post-trial Opinion on April 14, 2006. In its Opinion, the Court found in favor of the BU Defendants on certain claims but also found the BU Defendants liable for breach of fiduciary duty. The parties briefed numerous post-trial issues raised in connection with entry of a form of judgment order, including BU's claim to entitlement to receive any unclaimed portion of the judgment award. The Court issued its letter ruling on these issues on May 29, 2009. In the May 29, 2009 letter ruling, the Court, among other things: (i) held it would enter a judgment against the BU Defendants in the amount of $2,837,454 plus interest at the legal rate from the date of the Merger; (ii) awarded $40,000 to lead plaintiff Sergio Oliver; (iii) awarded $936,360 in attorneys' fees to Class Counsel plus interest thereon from January 1, 2004; (iv) awarded costs and out-of-pocket expenses; and (vi) directed that BU was entitled to receive the portion of the judgment award not claimed by members of the Class.

The parties thereafter reached a settlement, subject to approval of the Court ("Settlement"), before the entry of a judgment implementing the Court's various post-trial rulings. The Settlement calls for the creation of a Settlement Fund in the amount of $4,375,000 from which all awarded fees, expenses and administration costs are to be paid, with the net amount to be distributed pro rata to the members of a Settlement Class whose claims are approved. BU is not entitled to receive any unclaimed portion of the Settlement Fund. In exchange, claims against the BU Defendants and other Released Parties are to be released and the Action will be dismissed with prejudice. The complete terms of the Settlement are set forth in the Settling Parties' Stipulation, which is available for inspection at the Register in Chancery of the New Castle County Courthouse, 500 North King Street, Wilmington, Delaware 19801.

If you held Seragen common stock on either of the Class Certification Dates, you may be a member of the Settlement Class and your rights may be affected by the Settlement. Class members wishing to participate in the Settlement must submit either a Claim Confirmation form (if the Class member had an approved and paid claim for shares held as of the Merger Date in connection with the Partial Settlement) or a Proof of Claim form so that it is received by The Garden City Group, Inc. (the "Claims Administrator"), no later than June 7, 2010. FAILURE TO FILE A CLAIM CONFIRMATION OR A PROOF OF CLAIM FORM, EVEN IF YOU HAD A CLAIM APPROVED IN THE PRIOR SETTLEMENT, WAIVES ANY RIGHT TO PARTICIPATE IN THE SETTLEMENT FUND. All Class members will be bound by any judgment entered with respect to certification of the Class and the Stipulation and Settlement, regardless of whether you submit a Claim Confirmation or Proof of Claim form. If you object and wish to be heard with respect to either the Settlement or the certification of the Class, you must file an objection by March 5, 2010, in the manner and form explained in the detailed Notice referred to below.

In order to receive a detailed Notice of Pendency of Class Action, Certification of Class, Proposed Settlement of Class Action, Settlement Hearing and Right to Appear and a Claim Confirmation and Proof of Claim form, please contact:In re Seragen Securities Litigation II, c/o The Garden City Group, Inc., Claims Administrator, P.O. Box 9595, Dublin, OH 43017-4895, Phone [phone].

A hearing with respect to confirmation of the Class and with respect to the Settlement will be held before the Honorable Vice Chancellor Noble, on March 15, 2010 at 10:00 a.m., at the New Castle County Courthouse, 500 North King Street, Wilmington, Delaware 19801. Questions concerning the Settlement may be directed to Michael A. Weidinger, Pinckney, Harris & Weidinger, LLC, 1220 N. Market Street, Suite 950, Wilmington, DE 19801, [phone].

Contacts:

Pinckney, Harris & Weidinger, LLC
Michael A. Weidinger, 302-504-1528