Defendant Name:
Stiefel Laboratories Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
GlaxoSmithKline plc
SIC Code:
2834
CUSIP:
37733W10
Document Reference:
comp22187
Document Details
Legal Case Name
SEC v. Stiefel Laboratories Inc. and Charles W. Stiefel
Document Name
Complaint
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 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."
Related Documents:
Litigation Release
On December 12, 2011, the SEC issued a litigation release describing the complaint against Stiefel Laboratories Inc. and Charles Stiefel.
2011-261
12-Dec-2011
Press Release--Civil Action
SEC Charges GlaxoSmithKline Subsidiary and Former CEO With DeFrauding Employees in Stock Plan
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."
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."
Order on Motion for Final Approval to Distribute the Entire Fair Fund to Eligible Shareholders
The Court ordered that: "Plaintiff Securities and Exchange Commission's Motion for Final Approval to Distribute the Entire Fair Fund to Eligible Shareholders is GRANTED. The Co-Distribution agents are directed to proceed to distribute the entire Fair Fund in this case to Eligible Shareholders as set forth in the Motion and the Distribution Plan, in the amounts set forth in Exhibit A to the Motion."
Order on Motion to Make a Supplemental Distribution
The Court ordered: "Plaintiff Securities and Exchange Commission's Motion, [ECF No. 294], is GRANTED. The Co-Distribution agents are directed to make a supplemental distribution from the Fair Fund to the six Eligible Shareholders set forth in the Motion and in the amounts set forth the Motion."
Other Defendants in Action:
