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RLA defeats motion to dismiss action by shareholder against
COVID-19 vaccine manufacturer Sinovac
RLA recently defeated a motion to dismiss a Complaint filed in the U. S. District of Massachesetts against Sinovac Biotech Ltd. (Nasdaq; SVA) and its Board of Directors for, among other things, breach of fiduciary duties. Sinovac is one of the world's largest manufacturers of vaccines for the COVID19 virus. The Complaint, brought on behalf of Heng Ren Investments alleges that certain members of Sinovac's management intentionally diluted the shares of minority shareholders to facilitate their effort to take the Company private.
Sinovac, a Company incorporated under the laws of Antigua, challenged the Complaint by denying that the Court was the proper forum to resolve this dispute. The Court (Gorton, J.) agreed with RLA’s position that Sinovac consented to jurisdiction in Massachusetts by virtue of its initiation of separate litigation against another entity in the Commonwealth. RLA managing attorney Stephen Ryan stated, “Importantly, in addressing Sinovac’s forum non conveniens argument—which claimed that the case should be litigated in Antigua — the Court sided with RLA in stating that there is a strong public interest in making U.S. courts available to resolve disputes involving entities who choose to list their shares on U.S. markets, as Sinovac has done. This is a good decision for U.S. investors.”