Shares in MannKind Corp. lost more than 4 percent Wednesday after the company settled a lawsuit by a former executive claiming he was wrongfully fired.

The action was brought by Wayman Wendell Cheatham, who served as vice president of medical and regulatory affairs for the Valencia-based pharmaceutical company. He was seeking $4 million in damages.

Wendell Cheatham alleged that he was forced out of MannKind in 2005 because he complained crucial clinical trial information regarding Technosphere, an inhaled form of insulin, was withheld from the Food and Drug Administration. However, he did not say that Technosphere was unsafe.

The settlement came amid juror deliberations after a trial in Los Angeles Superior Court. MannKind declined comment on the settlement. However, it had previously contended Cheatham voluntarily left the company because he received a poor job performance review and refused to accept a different position within the company.

MannKind has spent $700 million developing Technosphere, and may need to spend another $300 million before the drug is available to patients.

Shares in MannKind fell 46 cents to $10.39 in afternoon trading Wednesday on the Nasdaq. Shares have fallen more than 34 percent this year.