Athira Pharma Derivative Suit Settlement Gets Final Approval

Athira Pharma Inc. investors obtained a fair settlement with the biotech company’s leaders, a federal court said in approving the agreement to institute internal governance and oversight reforms following a research misconduct scandal.

Attorneys’ fees of roughly $1.1 million and expenses totaling about $29,000 are also approved, Judge Thomas S. Zilly said Thursday for the US District Court for the Western District of Washington.

• The shareholder derivative suit and a related class action stem from allegations that Athira’s former CEO, Leen Kawas, published research papers with altered images while completing graduate coursework—research that underlay the company’s in-development products for Alzheimer’s ...