NEW YORK, Aug. 25, 2022 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of a class consisting of all holders of Sinovac Biotech Ltd. (“Sinovac” or the “Company”) (NASDAQ: SVA) stock, other than Defendants, who sold shares between April 11, 2016 and February 22, 2019 (the “Class Period”).
All investors who sold the shares of Sinovac Biotech Ltd between April 11, 2016 and February 22, 2019 are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain request additional information concerning the action at www.whafh.com.
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The filed Complaint alleges that in opposition to the Yin Group, 1Globe and Li and other Defendants, undertook a fraudulent plan to disenfranchise other shareholders. On March 28, 2016, Sinovac adopted the Rights Agreement that contained a “poison pill” designed to prevent parties other than the Yin Group from taking control of Sinovac. If triggered, the Rights Agreement would permit each shareholder, other than the investors that triggered the Agreement, to purchase discounted shares or receive free shares if the Board conducts an “Exchange.” The Rights Agreement has been amended seven times, is still in effect and set to expire on February 22, 2023.
The SEC Order states that Li was opposed to the Rights Agreement because he believed it would discourage rivals bids for the Company. Therefore, Li attempted to evade the Rights Agreement by secretly accumulating a substantial portion of Sinovac’s common stock so he could influence a battle for control.
Li, through 1Globe and other entities, family members and aliases, accumulated shares of Sinovac. By the beginning of May 2016, at the latest, Li had accumulated acquisition of beneficial ownership greater than 15% of Sinovac stock as set out in Section 1.1 of the Rights Agreement. Further, Li and 1Globe’s agreement to work in concert also triggered the Rights Agreement.
The SEC Order found that Li and 1Globe violated their disclosure duties under Section 13(d) several times during the Class Period. These false and misleading statements concealed multiple Trigger Events under the Rights Agreement. Under the Rights Agreement, the Rights become exercisable on the “Distribution Date,” which occurs on the close of business on the tenth Business Day after the Share Acquisition Date, which is the “first date of public announcement (which … shall include … the filing of a report pursuant to Section 13(d) of the Exchange Act …) that an Acquiring Person has become such … an Acquiring Person.” An Acquiring Person is the “Beneficial Owner of 15% or more of Common Shares then issued and outstanding.”
Defendants’ misrepresentations regarding ownership of Sinovac caused a delay in certain bases for the Share Acquisition Date and as a result, the Class are not able to obtain the shares they would have been entitled to under the Rights Agreement for all the shares of Sinovac stock that the Class sold between the beginning of the Class Period and February 22, 2019.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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