We are investigating Sinovac Biotech LTD. (“Sinovac” or the “Company”) for potential misconduct in connection with its implementation of a poison pill contained in its shareholder rights agreement. On February 22, 2019, Sinovac issued a press release announcing that it was implementing the poison pill because its Board of Directors “determined that certain stockholders became ‘Acquiring Persons,’ as defined in the Company’s Rights Agreement, prior to the Company’s Annual General Meeting held on February 6, 2018.” The Company therefore planned to conduct an “Exchange” under the Rights Agreement, whereby it would exchange each Right “that was valid and outstanding as of the close of trading in the United States on February 22, 2019” for additional company shares.

Sinovac is alleged to have conducted the exchange under the Rights Agreement with shareholders as of February 22, 2019, even though the agreement was triggered much earlier, because conducting the exchange as of that later date favors Company insiders. These actions are alleged to favor Weidong Yin, the Company’s CEO, and other shareholders associated with him, in their effort to take control of the Company.

In addition, Sinovac has been engaged in protracted litigation with 1Globe Capital LLC, the party that it alleges triggered the Rights Agreement, since 2018. Sinovac’s implementation of the poison pill, as well as all trading of Sinovac’s shares on the NASDAQ stock exchange, have been halted since shortly after Sinovac announced its implementation of the poison pill on February 22, 2019.

If you own shares of Sinovac, we may be able to achieve a recovery for harm inflicted by the company’s attempt to implement its poison pill that resulted in the halt in trading of the company’s stock. To learn more, please fill out the form below for a no-cost, risk-free, and completely confidential consultation. 

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

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