Short Form Notice of Proposed Derivative Settlement

RENO, Nevada, Dec. 02, 2020 (GLOBE NEWSWIRE) --

UNITED STATES DISTRICT COURT

DISTRICT OF NEVADA

IN RE ORMAT TECHNOLOGIES, INC.     DERIVATIVE LITIGATION

Case No. 18-cv-00439

SHORT FORM NOTICE OF PROPOSED DERIVATIVE SETTLEMENT

TO:     ALL RECORD HOLDERS AND BENEFICIAL OWNERS OF ORMAT TECHNOLOGIES, INC. (“ORMAT” OR THE “COMPANY”) COMMON STOCK AS OF DECEMBER 2, 2020 (THE “RECORD DATE”)

PLEASE TAKE NOTICE that the above-captioned consolidated derivative action (the “Consolidated Derivative Action”) is being settled on the terms set forth in a Stipulation of Settlement, dated July 10, 2020 (the “Stipulation” or “Settlement”).¹  Under the terms of the Stipulation, as a part of the proposed Settlement, Ormat will adopt certain corporate governance enhancements.  These reforms are designed to address the claims asserted in the Consolidated Derivative Action and enhance Ormat’s internal controls over accounting and compliance with applicable laws, rules and regulations regarding financial reporting.

The full Board reviewed the derivative settlement parameters, and exercising its business judgment and mindful of its duties to stockholders, approved the Settlement.

IF YOU WERE A RECORD OR BENEFICIAL OWNER OF ORMAT COMMON STOCK AS OF DECEMBER 2, 2020 PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY AS YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THE ABOVE REFERENCED LITIGATION.

On March 22, 2021, at 10:00 a.m., the Court will hold a hearing (the “Settlement Hearing”) in the Consolidated Derivative Action, either in person, telephonically or via video.  The purpose of the Settlement Hearing is to determine (i) whether the Settlement is fair, reasonable and adequate (ii) whether a final judgment should be entered and the Consolidated Derivative Action should be dismissed with prejudice pursuant to the Stipulation; and (iii) such other matters as may be necessary or proper under the circumstances.

Any Ormat stockholder that objects to the Settlement shall have a right to appear and to be heard at the Settlement Hearing, provided that he, she or it was a stockholder of record or beneficial owner as of December 2, 2020.  Any Ormat stockholder who satisfies this requirement may enter an appearance through counsel of such stockholder’s own choosing and at such stockholder’s own expense, or may appear on their own.  However, no stockholder of Ormat shall be heard at the Settlement Hearing unless, no later than February 22, 2021, such stockholder has filed with the Court, a written notice of objection containing the following information: