Paysign, Inc. Settles Stockholder Derivative Litigation

Paysign, Inc. has entered into a Stipulation and Agreement of Settlement to resolve multiple stockholder derivative actions pending in the United States District Court for the District of Nevada. The derivative actions alleged violations of Sections 10(b) and 14(a) of the Exchange Act, breaches of fiduciary duty, unjust enrichment, and waste. The settlement, which is subject to court approval, includes the adoption of certain corporate governance reforms and the dismissal of the derivative actions with prejudice. The court has scheduled a final approval hearing for November 14, 2025. The settlement is not an admission of fault or wrongdoing by the company but is deemed in the best interest of the company and its stockholders given the costs and risks of continued litigation.