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Sinovac Biotech Ltd. Class Action Lawsuit - SVA

13 days left to seek lead plaintiff status

Case Summary

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The Sinovac class action lawsuit seeks to represent holders of Sinovac Biotech Ltd. (NASDAQ: SVA) 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.

If you suffered substantial losses and wish to serve as lead plaintiff of the Sinovac class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Sinovac class action lawsuit must be filed with the court no later than October 17, 2022.

CASE ALLEGATIONS: Sinovac is a biopharmaceutical company that focuses on the research, development, manufacturing, and commercialization of vaccines.  Defendants are individuals and entities associated with 1Globe, a family investment office that is owned and controlled by defendant Jiaqiang Li, Sinovac’s largest shareholder when Sinovac’s CEO made an offer in January 2016 to buy Sinovac for approximately $350 million.  Li supported a competing group that sought to buy Sinovac for a higher price.

But as the Sinovac class action lawsuit alleges, rather than provide this support in an open and transparent manner, Li and 1Globe used deceptive practices to advance their position.  And after Sinovac adopted a rights agreement on March 28, 2016 containing a “poison pill” that limited the amount of Sinovac stock that a shareholder could acquire (the “Rights Agreement”), defendants made many intentionally false and misleading statements, and violated their statutory disclosure obligations under Section 13(d) of the Securities Exchange Act of 1934 to conceal the extent and purpose of Li’s and 1Globe’s ownership of Sinovac stock.

On May 13, 2020, the U.S. Securities and Exchange Commission (“SEC”) issued a Cease-and-Desist Order against Li and 1Globe, determining that Li’s and 1Globe’s deceptive actions “depriv[ed] existing and potential shareholders of information necessary to make fully informed investment decisions.”  Moreover, the SEC imposed $290,000 in penalties on Li and 1Globe for their violations of their disclosure requirements under Section 13(d).

The Sinovac class action lawsuit thus alleges that defendants caused the class substantial harm by making them lose their ability to collect at least millions of shares that they would have otherwise been entitled to under the Rights Agreement that Sinovac adopted on March 28, 2016.  The Sinovac class action lawsuit further alleges that defendants’ actions also caused harm because their misrepresentations and omissions concerning 1Globe’s and Li’s true ownership of Sinovac stock, and their efforts to take control of Sinovac, artificially suppressed the price of Sinovac stock.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any holder of Sinovac stock who sold their shares during the Class Period to seek appointment as lead plaintiff.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts 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 Sinovac class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Sinovac class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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