COMMITMENTS AND CONTINGENCIES Research Collaboration and Licensing Agreements As part of the Company's research and development efforts, the Company enters into research collaboration and licensing agreements with unrelated companies, scientific collaborators, universities, and consultants. These agreements contain varying terms and provisions which include fees and milestones to be paid by the Company, services to be provided, and ownership rights to certain proprietary technology developed under the agreements. Some of these agreements contain provisions which require the Company to pay royalties, in the event the Company sells or licenses any proprietary products developed under the respective agreements. Legal Proceedings In August 2017, Martin Shkreli, the Companys former Chief Executive Officer, was convicted on securities fraud charges following investigations by the U.S. Attorney for the Eastern District of New York and the U.S. Securities and Exchange Commission. Mr. Shkreli appealed his conviction to the United States Court of Appeals for the Second Circuit, and in July 2019, the Court of Appeals affirmed his conviction. In connection with the trial and appeal proceedings, the Company advanced a portion of Mr. Shkrelis legal fees, of which $3.8 million was reimbursed by its directors and officers insurance carriers. Pending the outcome of Mr. Shkreli's appeal, the insurance carriers reserved their rights to assert that certain of the advanced funds pertain to claims excluded from coverage under the relevant insurance policy and are therefore recoverable by the carriers, and therefore the final amount of the reimbursement from the insurance carriers is not currently estimable. As previously disclosed, in August 2015, the Company filed a lawsuit in federal district court for the Southern District of New York against Mr. Shkreli, asserting that he breached his fiduciary duty of loyalty during his previous tenure as the Companys Chief Executive Officer and a member of its Board of Directors. Mr. Shkreli subsequently initiated a JAMS arbitration against the Company claiming that the Company breached his December 2013 employment agreement. The Company asserted counterclaims in the arbitration that were substantially similar to the claims it previously asserted in the federal lawsuit. In February 2019, Mr. Shkreli amended his arbitration demand to add a claim relating to an October 2014 summary separation proposal. After the arbitration panel determined that Mr. Shkreli could not bring claims against Stephen Aselage, Margaret Valeur-Jensen, and Gary Lyons before JAMS for lack of jurisdiction, Mr. Shkreli brought suit against them in federal court for the Southern District of New York in May 2019 (SDNY Action). The hearing on the merits before the JAMS arbitration panel was scheduled to commence in June 2019. In advance of the scheduled arbitration hearing on the above-referenced claims and counterclaims, the Company and Mr. Shkreli reached a comprehensive settlement covering all of the disputes between them and Mr. Aselage, Dr. Valeur-Jensen, and Mr. Lyons as of such time and on June 17, 2019, the Company and Mr. Shkreli entered into a Settlement Agreement memorializing such terms. Under the terms of the Settlement Agreement, each of the parties pending claims and counterclaims was dismissed with prejudice (and Mr. Shkreli dismissed, with prejudice, the SDNY Action), and the parties, including Retrophin on behalf of Mr. Aselage, Dr. Valeur-Jensen, and Mr. Lyons, granted one another a broad mutual release of claims. Mr. Shkreli also agreed to extinguish his rights to future advancement of legal fees and indemnification by the Company (other than for certain pending litigation), and to abide by certain standstill restrictions and the Company made an undisclosed cash payment to Mr. Shkreli. In October 2018, Spring Pharmaceuticals, LLC (Spring) filed a lawsuit against the Company, Martin Shkreli, Mission Pharmacal Company and Alamo Pharma Services, Inc. in the United States District Court for the Eastern District of Pennsylvania alleging that the Company violated various federal and state antitrust and unfair competition laws by allegedly refusing to sell samples of the Thiola brand drug so that Spring can conduct the bioequivalence testing needed to submit an ANDA to the FDA for approval to market a generic version of the product. Spring is seeking injunctive relief and damages. The Company intends to vigorously defend against Springs claims. In January 2019, the Company filed a motion to dismiss the lawsuit. In April 2019, the Court stayed the Company's motion to dismiss to allow for discovery limited to the question of whether Spring has standing to sue, which has been largely completed. No amounts have been accrued related to this matter and the outcome cannot be determined. The Company is not aware of any other proceedings or claims that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.