Frequently Asked Questions

  1. What is this lawsuit about?

    The Commission alleged that, from 2006 through April 20, 2009, the Defendants violated the federal securities laws during the repurchase of Stiefel Labs stock shares primarily from employee shareholders. On June 4, 2020, the Honorable Darrin P. Gayles of the United States District Court for the Southern District of Florida (the “Court”) created the Stiefel Laboratories Fair Fund (the “Fair Fund”) and entered Final Judgments against the Defendants, ordering them in the aggregate to pay disgorgement of $32,300,000.00, prejudgment interest on disgorgement of $3,140,000 and civil penalties of $1,560,000, for a total monetary liability of $37,000,000.00. Each of the Final Judgments orders the Commission to hold the funds pending further order of the Court. The Defendants have made all these payments, which subtracting expenses and adding interest earned, now constitute the Fair Fund in this case.

    On June 12, 2020, the Court appointing Miller Kaplan Arase LLP as the Tax Administrator to handle the tax obligations of the Fair Fund, and Robert Levenson and Christopher Martin, Commission employees, as the Distribution Agents to administer the distribution of the Fair Fund. On August 4, 2020, the Court entered an Order appointing Epiq Class Action & Claims Solutions, Inc. (“Epiq”) as the Third Party Administrator to assist in the implementation of the Distribution Plan in consultation with the Distribution Agents.

    You may review copies of the Court’s Orders here.

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  2. Who is eligible to participate in the Fair Fund?

    An “Eligible Shareholder” means any shareholder (or their successors or heirs) in Stiefel Labs identified by Commission staff during its investigation and litigation, based in part on records provided by the Company, who sold Stiefel Labs shares to the Company between December 12, 2006 and April 20, 2009, and suffered a Net Loss as that term is defined in the Distribution Plan, which can be found here, who is not an Excluded Shareholder as identified in the Distribution Plan and FAQ 5.

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  3. What is the total amount of the Fair Fund?

    The Defendants have paid $37 million. This money, less expenses plus any earnings and interest, constitutes the Fair Fund.

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  4. How do I receive a Distribution Payment?

    To qualify for a Distribution Payment from the Stiefel Labs Fair Fund, you must have been identified as an Eligible Shareholder by the Commission. Once the Court issues an Order approving the Distribution Plan, all Eligible Shareholders will receive a Notice informing them of their calculated pro rata share of the Net Available Fair Fund. The Notice will provide further information on what Eligible Shareholders need to do to receive a Distribution Payment.

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  5. Who is excluded from participation in the Fair Fund?

    An “Excluded Shareholder” means any Potentially Eligible Shareholder who:

    1. was an officer or director of Stiefel Labs, including but not limited to the Chief Executive Officer, Chief Financial Officer, and members of the Stiefel Lab’s Board of Directors (or any of their affiliates, spouses, partners, parents, children, siblings, or controlled persons or entities) who sold shares before January 1, 2009;
    2. was a member of the Stiefel family (or any of their affiliates, spouses, partners, parents, children, siblings, estates, or controlled entities or persons);
    3. was an individual or entity sharing an address with any officers or directors of Stiefel Labs or members of the Stiefel family who does not otherwise meet the definition of (a) or (b);
    4. sold stock received as a result of a charitable contribution or as a gift;
    5. sold shares to the Company prior to December 12, 2006; or
    6. had a Net Loss of Zero.

    Once the Court issues an Order approving the Distribution Plan, all Excluded Shareholders will receive a Notice informing them of their status and the reason for it. The Notice will provide further information on what Excluded Shareholders need to do if they wish to object to their status.

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  6. What is a Net Loss?

    “Net Loss” means the calculated amount an Eligible Shareholder should have received from his or her sale of Company shares to Stiefel Labs based on the valuations performed by Commission expert witness Marc Brown of AlixPartners during the litigation (“Expert Valuation),” minus the amount the Eligible Shareholder actually received from the Company, and minus any Investment Recovery. Each Eligible Shareholder will receive a pro rata share of their Net Loss through the Distribution Plan. The Commission has identified the Net Loss for each Eligible Shareholder in the table in Exhibit A attached to the proposed Distribution Plan, which can be found here. If the total amount a Potentially Eligible Shareholder actually received plus any Investment Recovery is equal to or greater than the Expert Valuation, then the Net Loss for that Potentially Eligible Shareholder shall be zero and that shareholder shall be an Excluded Shareholder.

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  7. What is an Investment Recovery?

    “Investment Recovery” shall mean any amount recovered by an Eligible Shareholder on the sale of Stiefel Labs stock to the Company in excess of the sales proceeds the Eligible Shareholder received from the Company, including but not limited to any payment the Eligible Shareholder obtained by prevailing in or settlement of any lawsuit against the Defendants arising from the same or similar facts as alleged in the Commission’s Complaint.

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  8. What is Epiq’s Relationship to the Defendants/SEC/Case?

    Epiq is the Third Party Administrator hired to fulfill certain responsibilities in this case such as mailings, distribution, and other administration tasks.

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  9. How will my information be protected?

    As a long-established legal services firm, our electronic systems, software applications, employee and operational protocols are all designed to afford utmost protection and security for the case information provided to us. Further, we are obligated to fulfill the security requirements mandated by the various Court Jurisdictions and Governmental Entities that oversee the various types of cases we administer.

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  10. How do I get additional information about the Distribution Plan?

    You may contact the Distribution Agents by sending an email to or, or by writing to:

    SEC v Stiefel Labs Fair Fund
    Third Party Administrator
    P.O. Box 2857
    Portland, OR 97208-2857

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