SVA Class Action Complaint Filed: Johnson Fistel, Globally-Recognized Law Firm Encourages Shareholders to Submit Their Sinovac Biotech Ltd. Losses for Securities Class Action Against 1Globe Capital LLC and Certain of its Officers
Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of Sinovac Biotech Ltd. (NASDAQ: SVA). The Sinovac class action lawsuit seeks to represent holders of Sinovac Biotech Ltd. stock who sold their shares between April 11, 2016 and February 22, 2019 (the “Class Period”). The Sinovac class action lawsuit – captioned MW Gestion v. 1Globe Capital LLC, No. 22-cv-11315 (D. Mass.) – charges 1Globe Capital LLC (“1Globe”), certain of its top executives, as well as its sole owner and his alleged assumed name “Chiang Li Family” with violations of the Securities Exchange Act of 1934. Investors are hereby notified that they have until October 17, 2022 to move the Court to serve as lead plaintiff in this action.
What actions may I take at this time? If you suffered a loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker (jimb@johnsonfistel.com) by email or phone at 619-814-4471. If emailing, please include a phone number.
There is no cost or obligation to you.
According to the lawsuit, defendants’ intentionally false statements and omissions concerning the true nature of 1Globe, a family investment office that is owned and controlled by defendant Jiaqiang Li, and Li’s ownership of Sinovac stock caused the exchange, under the Rights Agreement of March 28, 2016 which included a “poison pill” limiting the number of Sinovac shares that a shareholder could acquire, to be delayed by several years. If Li had fully disclosed his ownership of Sinovac stock, as he was required to do under Section 13(d), it would have been clear that the Rights Agreement was triggered by May 2016, at the latest. While Sinovac knew enough information starting in 2016, largely based on private correspondence, to determine that 1Globe and Li triggered the Rights Agreement, defendants hid the full extent of their ownership of Sinovac stock and their agreements in connection with the battle for control of the Company. Defendants therefore also tortiously interfered with Sinovac’s contractual obligations to its shareholders under the Rights Agreement.
Also, according to the lawsuit, if 1Globe’s and Li’s actions were disclosed publicly, as they were required to be under Section 13(d), shareholders’ rights would have been exercisable based on that public disclosure, and an exchange would have occurred based on that date. By misrepresenting the true nature of their ownership of Sinovac stock, defendants caused that date to be delayed almost three years, until February 22, 2019, resulting in the class losing their rights to acquire additional shares of Sinovac stock for all of their shares that they sold in the interim. While Sinovac should have implemented the Rights Agreement in 2016 based on the information available to it at the time, 1Globe and Li exacerbated the problem by violating their disclosure obligations under Section 13(d). Moreover, defendants caused the value of Sinovac stock to be artificially depressed by preventing the public from accounting for the value of defendants’ stake in Sinovac and their efforts to take control of the Company.
A lead plaintiff will act on behalf of all other class members in directing the Sinovac class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor’s ability to share any potential future recovery of the Sinovac class action lawsuit is not dependent upon serving as lead plaintiff. For more information regarding the lead plaintiff process please refer to https://www.johnsonfistel.com/lead-plaintiff-deadlines.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. Johnson Fistel seeks to recover losses incurred due to violations of federal securities laws. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
Investor Relations
jimb@johnsonfistel.com