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SciClone Raises Standards, and Eyebrows, With FCPA Deal

Jaclyn Jaeger | November 29, 2011

Find a company that has established a robust compliance program in recent years, and it's a fair bet that federal prosecutors provided the, ahem, motivation to do so. But once in a great while, a company adopts such programs to appease shareholders.

Such were the circumstances faced by SciClone Pharmaceuticals, which has agreed to adopt certain corporate governance reforms and pay $2.5 million in plaintiffs' legal fees through its director-and-officer insurance policy, all as part of a deal to settle a consolidated shareholder lawsuit stemming from alleged violations of the Foreign Corrupt Practices Act.

Typically, the intent of a shareholder derivative lawsuit—where shareholders sue the board over allegations of bad management—is to get the company's officers and directors to enter into a settlement of monetary damages, explains Lucinda Low, a partner with...

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