- Vivo Capital files multiple lawsuits to protect Sinovac (SVA, Financial) shareholders from value-destructive actions by the current board.
- The board's actions have led to the resignation of Sinovac's independent auditor, creating a corporate governance crisis.
- Sinovac's stock trading remains halted on NASDAQ since 2019 due to ongoing governance issues.
Vivo Capital, a global investment firm, has initiated several legal measures against the current board of Sinovac Biotech Ltd. (SVA) to protect shareholder interests. The firm accuses the board, under the influence of activist investor 1Globe Capital LLC, of taking actions that undermine shareholder value, including disenfranchising investors and suggesting the cancellation of significant stock holdings.
Recent decisions by the board have destabilized Sinovac, leading to the resignation of its independent auditor, Grant Thornton. The auditor cited unreliability in the board’s resolutions and management’s representations, exacerbating the company's corporate governance crisis. Sinovac has been unable to secure a new auditor, delaying the potential resumption of its halted stock trading on NASDAQ since 2019.
To address these issues, Vivo Capital has filed lawsuits across multiple jurisdictions. These include a case in the Antigua and Barbuda High Court challenging the board's actions, a lawsuit in New York against 1Globe-affiliated directors for fiduciary breaches, and a federal lawsuit in Massachusetts to compel 1Globe to comply with U.S. securities laws.
Vivo has urged other Sinovac shareholders to join their efforts and called for discussions with 1Globe to resolve the ongoing governance issues, allowing the company to refocus on its strategic objectives in the healthcare sector.
