SciClone Pharmaceuticals, Inc. Investor Files Lawsuit Over Alleged Securities Laws Violations
On November 24, 2010, the lead plaintiffs filed a Stipulation of Voluntary Dismissal, which was signed by Judge James Ware on December 1, 2010. The case is now dismissed without prejudice.
SEPTEMBER 2010 - An investor in SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) filed a lawsuit in the United States District Court for the Northern District of California, against SciClone Pharmaceuticals and others over alleged violations of Federal Securities laws.
SciClone Pharmaceuticals, Inc, FOSTER CITY, California, is a global specialty pharmaceutical company. It has a product portfolio of therapies for cancer and infectious diseases. According to the complaint the plaintiff alleges on behalf of purchasers of the common stock of the Company between May 11, 2009 and August 10, 2010, that SciClone Pharmaceuticals, Inc. and certain of its Officers issued between May 11, 2009 and August 10, 2010, a series of materially false and misleading statements related to its business and operations in violation of the Securities Exchange Act of 1934.
On August 9, 2010, after the close of the market, SciClone disclosed that it is facing investigations by the Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) about possible violations of U.S. Foreign Corrupt Practices Act (“FCPA”). SciClone Pharmaceuticals, Inc, said the DOJ told the SciClonePharmaceuticals, Inc, that it has received information about practices by SciClone that may violate the law. SciClone Pharmaceuticals, Inc. shares (SCLN) traded during 2007 at roughly $3, but lost in 2008 substantially, and traded as low as $0.78 per share. During 2009 SciClone Pharmaceuticals shares gained value and traded as high as $4.97 per share in Fall 09, before losing another 50% value until the end of 2009. SCLN shares were able to restore stock value in 2010 and started trading in the beginning of 2010 with $2.54 per share. As early as April 2010 SCLN shares traded at $4.30 per share, but lost following the announcement on August 10, 2010, nearly 30% to close at $2.48 per share.
SciClone Pharmaceuticals Total Revenue increased over the past four years from $32.66million in 2007, to $37.06million in 2008, to $54.11million in 2008, and $72.41million in 2009. While its Revenue continuously increased over the past four years SciClone Pharmaceuticals had to report in 2007 and 2008 a Net Loss of $9.95million, respectively $8.35million. In 2009 SciClone Pharmaceuticals was able to report a Net Income of $11.95million.


