McCabe Rabin, P.A. Investigating Possible Misconduct In Connection With GlaxoSmithKline Subsidiary Stiefel Laboratories’ Employee-Owned Stock Buyback
WEST PALM BEACH – The law office of McCabe Rabin, P.A. is investigating claims on behalf of employee shareholders regarding misrepresentations and omissions in connection with Stiefel Laboratories, Inc.’s (Stiefel Labs) buyback of employee-owned company stock.
The Securities and Exchange Commission (SEC) has charged Stiefel Labs, a subsidiary of pharmaceutical giant GlaxoSmithKline since 2009, and its former CEO Charles Stiefel, with defrauding employee shareholders by knowingly buying back their Stiefel Labs stock at severely undervalued prices.
The SEC alleges that Stiefel Labs and Charles Stiefel made more than $110 million by repurchasing company stock from their employees and other shareholders in the company’s stock plan for much less than it was worth prior to the company’s buyout by GlaxoSmithKline.
According to the Complaint, between November 2006 and April 2009, Stiefel Labs, a then family-owned business, paid its employee-shareholders between $13,000 and $16,000 per share for Stiefel Lab’s stock. However, Stiefel Labs received more than $68,000 per share when it was acquired by GlaxoSmithKline in April 2009.
The SEC alleges that Charles Stiefel knew the equity valuation of the stock was low and misleading because he had been negotiating for the sale of the company. The Complaint also claims that Charles Stiefel ordered that the ongoing negotiations not be disclosed to employees and he misrepresented to shareholders that the company would remain family-owned.
Former shareholders who sold back their Stiefel Lab’s stock prior to the GlaxoSmithKline acquisition, may contact McCabe Rabin, P.A at 1-877-915-4040 or click here for a review of their potential claim.