Jury awards Nektar $90 million in Lilly contract case; securities class action pending

Nektar Therapeutics (Nasdaq: NKTR) said in an 8-K filed September 25, 2026 that a jury found Eli Lilly and Company breached the implied covenant of good faith and fair dealing in the license agreement for rezpegaldesleukin. The verdict came on September 24, 2026, in Nektar Therapeutics v. Eli Lilly & Co., Case No. 3:23-cv-03943-JD, in the U.S. District Court for the Northern District of California. The jury awarded Nektar $90 million in damages, plus interest to be determined by the court. Lilly is the defendant in that case.

Nektar is also a defendant in a securities class action in the same court, Schramke v. Nektar Therapeutics, et al., filed in March 2026. Nektar's quarterly report for the second quarter says the defendants are the company, its chief executive officer, its former chief financial officer and its chief research and development officer. The filings give only those titles and do not name the individuals.

The 8-K says the verdict is subject to post-trial proceedings and that any resulting judgment may be appealed. It does not say how the jury ruled on Nektar's other claims.

The contract case

Nektar filed the complaint against Lilly in August 2023, alleging breach of contract and breach of the implied covenant of good faith and fair dealing. The court denied Lilly's motion to dismiss. Lilly then filed counterclaims alleging breach of confidentiality provisions and defamation. In September 2025 it moved to dismiss them voluntarily with prejudice, and the court granted that motion in October 2025.

The court denied Lilly's summary judgment motion in March 2026, held a pretrial conference on August 6, 2026, and began the jury trial on September 8, 2026. The verdict followed.

The securities case

Schramke asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act and SEC rules, and seeks damages and attorneys' fees. According to the first-quarter report, the complaint was filed on March 6, 2026 and alleges the defendants made misleading statements or failed to disclose material information about the REZOLVE-AA trial from February 26, 2025 through December 15, 2025.

The second-quarter report calls the case early stage and says Nektar has recorded no liability for it. The company denies the claims, believes they are without merit and intends to defend the case vigorously. The filing reports no lead plaintiff or motion schedule.

What the filings say about liability

The second-quarter report, filed before the trial, said Nektar had recorded no liability for any litigation matter at June 30, 2026. The Lilly verdict is in Nektar's favor, but it is not yet a final judgment, and the 8-K does not say when the court will set the interest. The award comes against heavy losses: Nektar's annual report for 2025 shows a net loss of $164.1 million and $208.5 million used in operations that year.

A separate tax dispute

The second-quarter report also discloses a dispute in India. Indian goods and services tax authorities issued a show cause notice in October 2023 seeking to recover a refund of about $3.3 million that they had approved for July 2017 to September 2019, plus penalties and interest. Nektar received a demand in September 2025, has not paid it while its appeal is pending, and believes a loss is not probable.

Why it matters to shareholders

The company says it believes it has the documents, records and data it needs to continue developing rezpegaldesleukin. It warns that its ability to carry out important development and regulatory work would be significantly harmed if Lilly stops cooperating in transferring the program's records. The 8-K does not give a timetable for post-trial motions or any appeal.

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