SciClone and certain of its directors and officers have agreed to settle the consolidated derivative lawsuits that were filed following the company’s announcement that it was being investigated by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) for possible FCPA violations.
In September 2010, multiple lawsuits were filed against SciClone, as a nominal defendant, and certain of its directors and officers. The suits, which were later consolidated, alleged that “the Individual Defendants, by reason of their failure to implement and maintain internal controls and systems at the Company to assure compliance with the FCPA, breached their fiduciary duties and may be held liable for damages.”
According to the company’s October 12, 2011 press release, the parties agreed, subject to court approval, to settle the consolidated cases based on the company’s agreement to adopt certain specified corporate governance reforms and to pay $2.5 million in plaintiffs' attorneys' fees. The attorneys’ fees are to be paid by SciClone’s insurers under its director and officer liability policy.