Shareholder Class Action Filed Against SciClone Pharmaceuticals, Inc. by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP
RADNOR, Pa., Aug. 19 /PRNewswire/ — The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of the securities of SciClone Pharmaceuticals, Inc. (Nasdaq: SCLN) (“SciClone” or the “Company”), who purchased or otherwise acquired SciClone’s securities between May 11, 2009 and August 10, 2010, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges SciClone and certain of its officers with violations of the Securities Exchange Act of 1934. SciClone engages in the development and commercialization of therapeutics for the treatment of cancer and infectious diseases in the People’s Republic of China and internationally. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that defendants had propped up the Company’s results by manipulating SciClone’s sales abroad by allegedly engaging in illegal and improper sales behavior that eventually caused the Company to become the subject of investigations by the Securities Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for violations of the Foreign Corrupt Practices Act (“FCPA”); (2) that SciClone had inadequate systems of internal operational or financial controls, such that SciClone’s reported financial statements were true, accurate, or reliable; (3) the Company’s financial statements and reports were not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and SEC rules; and (4) the defendants lacked any reasonable basis to claim that SciClone was operating according to plan, or that SciClone could achieve guidance sponsored and/or endorsed by defendants.
SciClone’s principal product is ZADAXIN which is used for the treatment of hepatitis B and hepatitis C viruses and certain cancers, as well as for use as a vaccine adjuvant or as a chemotherapy adjuvant for cancer patients with weakened immune systems. Throughout the Class Period, SciClone claimed to have commercialization rights for DC Bead, a product candidate for the treatment of advanced liver cancer in China, as well as for ondansetron RapidFilm, an oral thin film formulation of ondansetron to treat and prevent nausea and vomiting caused by chemotherapy, radiotherapy, and surgery in China and Vietnam.
As investors ultimately learned, the Company’s expansion in China, as well as its representations concerning its systems of controls and procedures, were patently untrue. The truth later emerged that the defendants were allegedly engaged in illegal and improper sales and marketing activities in China which ultimately caused the Company to become the focus of a joint investigation by the SEC and the DOJ for possible violations of the FCPA. On this news, shares of the Company’s shares declined almost 30% in the single trading day, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than October 12, 2010, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Barroway Topaz Kessler Meltzer & CONTACT: Check, LLP Darren J. Check, Esq. D. Seamus Kaskela, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at firstname.lastname@example.org
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP