Moore Law PLLC and Tactile Systems Technology, Inc. notify investors of Tactile Systems Technology, Inc. of the following settlement notice

NEW YORK, July 11, 2024 /PRNewswire/ —

UNITED STATES DISTRICT COURT
DISTRICT OF DELAWARE

SUMMARY NOTICE OF THE PENDENCE OF A PROPOSED DERIVATIVE ACTION
SETTLEMENT AND RELEASE AGREEMENT AND SETTLEMENT HEARING

TO: ALL CURRENT HOLDERS AND BENEFICIARIES OF COMMON STOCK OF TACTILE SYSTEMS TECHNOLOGY, INC. (“TACTILE” OR THE “COMPANY”) AS OF 6 JUNE 2024 (THE “RECORD DATE”) (“CURRENT TACTILE SHAREHOLDERS”).

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THIS NOTICE RELATES TO A PROPOSED SETTLEMENT OF WEAVER V. MOEN, ET AL.Lead Case No. 22-CV-01063, a pending shareholder derivatives action in THE UNITED STATES DISTRICT COURT FOR THE DISTRICT DELAWAREAND CONTAINS IMPORTANT INFORMATION ABOUT YOUR LEGAL RIGHTS. IF THE COURT APPROVES THE SETTLEMENT, YOU ARE FOREVER PROHIBITED FROM CHALLENGING THE APPROVAL OF THE PROPOSED SETTLEMENT AND FROM PURSUE OF THE “RELEASED CLAIMS” AS DEFINED HEREIN.

THIS PROMOTION IS NOT A “CLASS ACTION” SO THERE IS NO SHARED FUND FROM WHICH YOU CAN CLAIMS ANY CASH.

PLEASE NOTE that the above-mentioned derivative action (the “Derivative Action”) is to be settled in a settlement agreement dated June 6, 2024 (the agreement”).¹ You are hereby notified of the proposed settlement (the “Settlement”) of this derivative shareholder action pursuant to Federal Rule of Civil Procedure 23.1.² This notice is issued by order of The United States District Court for the District of Delaware (the “Court”). This is not an expression of the Court’s opinion. It is intended to inform you of the terms of the proposed settlement and your rights under it.

Under the terms of the Agreement, Tactile will implement certain corporate governance improvements (the “Reforms”) as part of the proposed Settlement. These Reforms are designed to address the claims asserted in the Derivative and Litigation Complaint.³ and the plaintiff believes that they will improve Tactile’s internal controls as set out in Exhibit A to the Agreement. Tactile has agreed to maintain the reforms for a period of time specified in the Agreement and to take the necessary steps to approve sufficient funding for the costs of implementing and maintaining the reforms.

At 28 August 2024at 10:00 a.min the courtroom 6B of the honorable judge Gregory B. Williamsthe Court will hold a hearing (the “Settlement Hearing”). The purpose of the Settlement Hearing is to determine (i) whether the Settlement is fair, reasonable and appropriate; (ii) whether a final judgment should be entered and the derivative action should be dismissed with prejudice pursuant to the Agreement; (iii) whether up to $485,000.00 in attorneys’ fees and costs for plaintiff’s counsel and shareholder counsel; and (iv) any other matters as may be necessary or appropriate under the circumstances.

Any current shareholder who has an objection to the Settlement shall have the right to appear and be heard at the Settlement Hearing, provided that he, she or it was a shareholder of record or beneficial owner at the time of June 6, 2024Any current tactile shareholder who meets this requirement may appear through counsel of his or her own choosing and at his or her own expense, or may appear at his or her own expense. However, no current tactile shareholder may be heard at the settlement hearing unless 8 August 2024the shareholder has submitted a written objection to the court with the following information:

1. Your name, legal address and telephone number;
2. The name and number of the case (Weaver v Moen et al.Case No. 22-cv-01063);
3. Proof that you are a current shareholder on the record date, June 6, 2024;
4. The date(s) on which you purchased your Tactile shares;
5. A statement of your position regarding the issues to be heard at the settlement hearing, including the reasons for any objection or the reasons why you wish to appear and be heard;
6. Notification of whether you intend to appear at the settlement hearing (there is no obligation to appear);
7. Copies of any documents you wish to submit to the Court, together with the names of any witnesses you wish to call at the settlement hearing and the subjects of their testimony; and
8. The identities of all cases (including name, court and case number) in which the objector or his or her attorney has appealed a settlement in the past three years.

Only current Tactile shareholders who have filed and delivered valid and timely written objections will be entitled to a hearing at the settlement hearing, unless the Court orders otherwise. If you wish to object to the proposed settlement, you must submit the written objection described above no later than 8 August 2024.

Every current Tactile shareholder from June 6, 2024 any party failing to object in the manner provided herein shall be deemed to have waived such objection and shall forever be barred from raising any objection to the fairness, reasonableness or adequacy of the settlement as contained in the Agreement and/or to the attorneys’ fees and costs claimed against plaintiff’s counsel, unless the Court otherwise orders, but shall otherwise be bound by the judgment and releases to be entered.

You may inspect the agreement and other documents in the complaint at the Clerk of Court, 844 North King Street, Unit 18. Wilmington, Delaware 19801-3570, any time during regular business hours on any business day. You may also visit https://investors.tactilemedical.com/compliance.

PLEASE DO NOT CALL, WRITE OR ASK ANY OTHER QUESTIONS TO THE COURT OR THE ATTORNEY’S OFFICE. Any questions you may have regarding the matters discussed in this notice should be directed to Lee Squitieri ((email protected)) at (212) 421-6492 or in writing to Squitieri & Fearon, LLP, 305 Broadway, 7th Floor, New York, New York 10007.

Your written objections must be received by the clerk of the court no later than 20 calendar days before the settlement hearing.

The address of the court clerk is: United States District Court, County of Delaware, 844 North King Street, Unit 18, Wilmington, Delaware 19801-3570.

YOU MUST ALSO PROVIDE COPIES OF THE MATERIALS TO PLAINTIFF’S COUNSEL AND DEFENDANT’S COUNSEL SO THAT THEY ARE RECEIVED NO LATER THAN 20 CALENDAR DAYS PRIOR TO THE SETTLEMENT HEARING.

Plaintiff’s legal counsel:

Lee Squitieri
SQUITIERI & FEARON, LLP
305 Broadway
7th floor
New York, New York 10007
(212) 421-6492

Legal counsel for the defendants:

Joseph C. Schoell (#3133)
FAEGRE DRINKER BIDDLE & REATH LLP
222 Delaware Avenue, Suite 1410
Wilmington, Delaware 19801
(302) 467-4200
(email protected)

Matthew Kilby (pro hac vice)
Rory F. Collins (pro hac vice)
Anderson Tuggle (pro hac vice)
FAEGRE DRINKER BIDDLE & REATH LLP
2200 Wells Fargo Center
99 South Seventh Street
Minneapolis, Minnesota 55402
(612) 766-7000
(email protected)
(email protected)
(email protected)

PLEASE DO NOT CONTACT THE COURT REGARDING THIS NOTICE

BY ORDER OF THE COURT UNITED STATES DISTRICT COURT DISTRICT DELAWARE

DATED: July 11, 2024

¹ This summary notice should be read in conjunction with, and is qualified in its entirety by reference to, the text of the Agreement, which will be United States District Court for the District of Delaware. A link to the Form 8-K filed with the SEC containing the text of the Agreement can be found on the Company’s website on the Investor Relations page at https://investors.tactilemedical.com/annual-reports-sec-filings. All capitalized terms used herein have the same meanings as defined in the Agreement.

² A derivative action involves claims brought by a shareholder on behalf of a corporation, rather than on behalf of himself or herself or the corporation’s other shareholders. The relief in a derivative action benefits the corporation, rather than directly to individual shareholders.

³ “Litigation Demand” means the demand served on Tactile and/or members of the Board of Directors on behalf of the Shareholder. Cory Griffindated 2 September 2022.

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