SciClone Pharmaceuticals, Inc. ("SciClone" or the Company) is a US-based, China-focused specialty pharmaceutical company with therapies for oncology, infectious diseases and cardiovascular, urological, respiratory, and central nervous system disorders.
According to a press release dated August 13, 2010, the Complaint alleges that the Defendants engaged in the development and commercialization of therapeutics for the treatment of cancer and infectious diseases in the People's Republic of China and internationally. Its principal product is ZADAXIN 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.
The Complaint alleges that throughout the Class Period, Defendants were engaged in illegal and improper sales and marketing activities in China and abroad regarding its products. This ultimately caused the Company to become the focus of a joint investigation by the Securities and Exchange Commission ("SEC") and the Department of Justice ("DOJ") for possible violations of the Foreign Corrupt Practices Act ("FCPA"). It was only at the end of the Class Period, however, that investors ultimately learned the truth about the Company's operations after it was reported that the SEC and DOJ were investigating the Company for violations of the FCPA. At that time, shares of the Company declined almost 40% in the single trading day, on abnormally large trading volume.
On October 27, 2010, Judge James Ware signed the order consolidating two related actions under "In re SciClone Pharmaceuticals Securities Litigation,” case number 10-CV-03584. The Court appointed Plaintiffs George Berneshawi and Luciano Garzelli as lead Plaintiffs and Kahn Swick & Foti LLC and Brower Piven as co-lead Counsel. The amended Complaint shall be filed on or before November 29, 2010.
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.
