02:02 PM EDT, 07/18/2024 (MT Newswires) -- Cassava Sciences ( SAVA ) shares were up 7% in recent trading Thursday after the Delaware Court of Chancery scheduled a hearing to dismiss a lawsuit against the company's officers.

The Delaware court set a final settlement hearing for Sept. 9, according to a regulatory filing Thursday.

Cassava shareholders Dwayne Brazil and Gerard Bernales had filed a lawsuit against some of the company's officers and board members in August 2022 over the company's 2020 cash incentive bonus plan, calling it "excessive."

Both sides reached an agreement in May, which is now subject to court approval.

Among other things, the settlement changes the conditions under which Cassava founder and Chief Executive Remi Barbier will be eligible to receive a bonus. Barbier was originally entitled to receive the bonus if the company achieved a $3 billion valuation for 20 consecutive trading days at the end of 2021.

The settlement calls for the payment only after the US Food and Drug Administration approves Cassava's simufilam in any indication. It also calls for modifying the bonus amount based on certain parameters.

Price: 10.24, Change: +0.67, Percent Change: +7.00