An investor in SciClone Pharmaceuticals filed a lawsuit on behalf of purchasers of the common stock of the Company between May 11, 2009 and August 10, 2010, over alleged Federal Securities laws by SciClone Pharmaceuticals. Meanwhile an investigation on behalf of current long term investors in SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN), including those who purchased (also) prior to May 2009 and presently continue to hold those SCLN shares, over possible breaches of fiduciary duty by certain SciClone Pharmaceuticals officers and directors was announced.
According to the complaint filed in the United States District Court for the Northern District of California the plaintiff alleges on behalf of purchasers of the common stock of SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) between May 11, 2009 and August 10, 2010, that SciClone Pharmaceuticals, Inc. 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. The investigation on behalf of current long term investors seeks to determine whether certain officers and directors breached their fiduciary duties in connection with the alleged Securities Laws violations.
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.