Company: FOXX
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001213900-25-112192
Chunk: 127

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 127
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 Inc., et al., No. 2024-1200 (Del. Ch. Ct.), a class action complaint (“Complaint”)
in Delaware Chancery Court against the Company and certain “Individual Defendants” (“Joy” Yi Hua, Haitao Cui,
“Jeff” Feng Jiang, “Eva” Yiqing Miao and Edmund R. Miller) (“Action”). The lawsuit seeks declaratory
relief under provisions of the Delaware General Corporation Law relating to a waiver of the corporate opportunity doctrine that is contained
in the Company’s Amended and Restated Certificate of Incorporation. The plaintiff seeks a declaration that the waiver provision
is invalid, an injunction against the Company and the Individual Defendants to prevent them from attempting to enforce the waiver, attorneys’
fees, and the costs and disbursements of this action. The Company and each of the Individual Defendants deny any and all wrongdoing alleged
in the Complaint. However, to avoid the cost and distraction of litigation, the directors of the board of the Company (the “Board”)
determined that it was advisable and in the best interests of the Company and its stockholders to amend Article X of the Charter (the
“Amendment”). The Board thus approved and adopted the Second Amended and Restated Certificate of Incorporation of the Company
(the “Amended Charter”), and will direct the Amendment to be submitted to the stockholders of the Company for adoption and
approval at the next annual meeting of stockholders with the Board’s recommendation that the Amendment be approved and adopted by
the stockholders of the Company. 

On March 3, 2025, after the
plaintiff was advised of the Board’s approval of the Amended Charter, the plaintiff filed a notice of voluntary dismissal of the
Action as moot, which the Court approved by order dated March 4, 2025. Believing that the swift resolution of this Action was in the best
interests of and benefit to the Company, and without admitting the allegations the plaintiff made in the Complaint, the Company has agreed
to pay $85,000 (the “Mootness Fee,” inclusive of a $500 service award to the plaintiff) to the plaintiff’s counsel to
resolve the anticipated application by the plaintiff’s counsel for an award of attorneys’ fees and reimbursement of expenses.
The fee was paid by the Company on March 18, 2025. In connection with the March 13, 2025 stipulated order closing the case, the