SciClone Pharmaceuticals SCLN Stock Purchasers File Securities Class Action Lawsuit Complaint Against SciClone Pharmaceuticals Over Sales & Marketing Activity In China.
A securities fraud class action lawsuit has been filed against SciClone Pharmaceuticals, Inc. (“SciClone Pharmaceuticals”) and certain of its officers (collectively the “Defendants”) in the United States District Court for the Northern District of California on behalf of a class consisting of all purchasers of SciClone Pharmaceuticals common stock (symbol: SCLN) during the period between May 11, 2009 and August 10, 2010, inclusive (the “Class Period”), alleging that SciClone Pharmaceuticals, a developer of therapeutics for the treatment of cancer and infectious diseases in the People’s Republic of China, violated federal securities fraud laws and in particular the Securities Exchange Act of 1934, according to class action lawsuit news reports.
The SciClone Pharmaceuticals securities class action lawsuit complaint reportedly alleges that SciClone Pharmaceuticals failed to disclose and misrepresented the following alleged material adverse facts:
- that defendants had propped up SciClone Pharmaceuticals’s results by manipulating SciClone’s sales abroad by allegedly engaging in illegal and improper sales behavior that eventually caused SciClone Pharmaceuticals to be investigated by the Securities Exchange Commission (“SEC”) and Department of Justice (“DOJ”) for violations of the Foreign Corrupt Practices Act (“FCPA”);
- that SciClone had inadequate systems of internal operational or financial controls, such that SciClone’s reported financial statements were true, accurate, or reliable;
- SciClone Pharmaceuticals financial statements and reports were not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and SEC rules; and
- 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.
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