Defendant Name:
Stiefel Laboratories Inc.
Defendant Type:
Subsidiary of Public Company
Document Reference:
2011-261
Document Details
Legal Case Name
SEC v. Stiefel Laboratories Inc. and Charles W. Stiefel
Document Name
SEC Charges GlaxoSmithKline Subsidiary and Former CEO With DeFrauding Employees in Stock Plan
Document Date
12-Dec-2011
Document Format
Civil Proceeding
Case Number
11-cv-24438
Federal District Court
Florida, Southern District of Florida
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On December 12, 2011, the SEC announced that it, "charged a subsidiary of pharmaceutical company GlaxoSmithKline and the subsidiary's former chairman and CEO with defrauding employees and other shareholders in the company's stock plan by buying back their stock at severely undervalued prices."
Related Documents:
Complaint
On December 12, 2011, the SEC filed a complaint. In the complaint the SEC alleged that: "From November 2006 through April 2009, Defendant Stiefel Laboratories Inc. ..., at the time the world's largest private manufacturer of dermatology products, defrauded shareholders out of more than $110 million, at the direction of Defendant Charles W. Stiefel, its then chairman and CEO. The Defendants carried out this fraudulent scheme by purchasing stock, mainly from current and former employees, at severely undervalued prices."
Litigation Release
On December 12, 2011, the SEC issued a litigation release describing the complaint against Stiefel Laboratories Inc. and Charles Stiefel.
Final Judgment Against Defendant Stiefel Laboratories, Inc.
On June 5, 2020, the Court issued a final judgment against defendant Stiefel Laboratories, Inc. stating: "Without admitting or denying the allegations of the Complaint (except that Stiefel Labs
admits the jurisdiction of the Court over it and over the subject matter of this action), Stiefel Labs
has entered a general appearance, consented to entry of this Final Judgment, waived findings of
fact and conclusions of law, and waived any right to appeal from this Final Judgment. The Court,
therefore, finds that good cause exists for entry of final judgment against Stiefel Labs."
Investors to Receive $37 Million from SEC Settlement with Stiefel Laboratories and Charles Stiefel
The SEC stated that: "it has obtained final judgments that will require a former privately held dermatology products manufacturer and its former chairman and CEO to pay $37 million for the benefit of shareholders whom they defrauded through share buybacks that were improperly undervalued."
Order on Securities and Exchange Commission's Motion To Approve Distribution Plan
The Court ordered: "the Commission’s Distribution Plan . . . is APPROVED in all respects as the Distribution Plan for the Fair Fund in this case."
court_doc290_11-cv-24438
06-Dec-2021
Court Docket Document
Order
- Granted SEC's motion for final approval to distribute the entire fair fund
court_doc295_11-cv-24438
28-Jun-2022
Court Docket Document
Order
- The SEC motion for a supplemental distribution is granted
Other Defendants in Action:
