Scilex Holding Company Sends Letters to the U.S. Securities and Exchange Commission and Financial Industry Regulatory Authority Regarding Illegal Market Manipulation of the Common Stock of Scilex Holding Company
Scilex Holding Company (Nasdaq: SCLX) has sent letters to the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) regarding illegal market manipulation of its common stock. The company alleges that manipulative practices such as 'naked short selling' are being used to devalue its stock, violating SEC Regulation SHO. Scilex Management is committed to combating these illegal activities to protect shareholder value and rights. Copies of the letters can be accessed via the provided links.
- Scilex Holding Company is actively addressing illegal market manipulation which could lead to a more stable stock price.
- The company's commitment to protecting shareholder value may build investor confidence.
- Scilex is taking legal measures against 'naked short selling', which is a positive step towards ensuring fair market practices.
- The allegation of market manipulation suggests existing vulnerabilities in Scilex's stock trading practices.
- If proven true, the illegal activities could have previously harmed shareholder value, indicating potential financial losses.
- Regulation and legal scrutiny could result in increased operational costs for Scilex.
Insights
Scilex Holding Company has taken a proactive stance by addressing potential illegal market manipulation, specifically targeting practices like 'naked short' selling. This move indicates the company’s dedication to protecting shareholder value and maintaining market integrity. For retail investors, it's essential to understand that 'naked short' selling can artificially depress stock prices by creating selling pressure without the need to own the stock. By notifying regulatory authorities, Scilex not only aims to curb these manipulative practices but also seeks to restore investor confidence.
In the short term, this action could lead to increased stock price volatility as the market reacts to the news. However, in the long term, if the regulatory bodies respond favorably, it could lead to a more stable and transparent market environment for Scilex stock. Investors should watch for follow-up actions from the SEC and FINRA as these will be important in determining the effectiveness of Scilex’s efforts.
It's also worth noting that while addressing market manipulation is a positive step, it doesn't directly contribute to the company’s fundamental business growth or profitability. Therefore, investors should continue to monitor Scilex’s core business performance and financial health.
By sending letters to the SEC and FINRA, Scilex is leveraging regulatory frameworks to address potential illegal activities. SEC Regulation SHO is designed to prevent abusive short selling and ensure market stability. Naked short selling, which involves selling shares without ensuring their availability, can create undue market pressure and distort stock pricing.
This step by Scilex could set a precedent for other companies facing similar issues, emphasizing the importance of regulatory compliance and market fairness. Legal proceedings or regulatory actions resulting from these letters could be lengthy and their outcomes uncertain, which introduces an element of unpredictability for investors.
However, a favorable response from the regulatory bodies could strengthen market oversight and provide a more level playing field, benefiting long-term investors. Retail investors should stay informed about the progress of these regulatory reviews and any resulting market changes.
PALO ALTO, Calif., May 30, 2024 (GLOBE NEWSWIRE) -- Scilex Holding Company (Nasdaq: SCLX, “Scilex” or the “Company”), an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain, today sends a letter to both the U.S. Securities and Exchange Commission and Financial Industry Regulatory Authority regarding illegal market manipulation of the common stock of Scilex.
The practice of manipulative or abusive “naked short” selling or maintaining “naked short” positions may constitute a violation of SEC Regulation SHO. Scilex Management is determined to combat manipulative and illegal short selling of Scilex common stock which has the effect of reducing shareholder value and infringing on shareholders’ rights.
A copy of each of the letters to the U.S. Securities and Exchange Commission and Financial Industry Regulatory Authority can be download here.
The letter to Gary Gensler is available at http://ml.globenewswire.com/Resource/Download/3b0902a3-e3ef-4609-b286-1c542c325bb6
The letter to Robert Cook is available at http://ml.globenewswire.com/Resource/Download/f988a993-47d6-4e7a-a548-7cda95ea9835
For more information on Scilex Holding Company, refer to www.scilexholding.com
For more information on ZTlido® including Full Prescribing Information, refer to www.ztlido.com.
For more information on ELYXYB®, including Full Prescribing Information, refer to www.elyxyb.com.
For more information on Gloperba®, including Full Prescribing Information, refer to www.gloperba.com.
https://www.facebook.com/scilex.pharm
https://www.linkedin.com/company/scilex-holding-company/
About Scilex Holding Company
Scilex Holding Company is an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain. Scilex targets indications with high unmet needs and large market opportunities with non-opioid therapies for the treatment of patients with acute and chronic pain and are dedicated to advancing and improving patient outcomes. Scilex’s commercial products include: (i) ZTlido® (lidocaine topical system)
In addition, Scilex has three product candidates: (i) SP-102 (10 mg, dexamethasone sodium phosphate viscous gel) (“SEMDEXA™” or “SP-102”), a novel, viscous gel formulation of a widely used corticosteroid for epidural injections to treat lumbosacral radicular pain, or sciatica, for which Scilex has completed a Phase 3 study and has granted Fast Track status from the FDA in 2017; (ii) SP-103 (lidocaine topical system)
Scilex Holding Company is headquartered in Palo Alto, California.
Forward-Looking Statements
This press release and any statements made for and during any presentation or meeting concerning the matters discussed in this press release contain forward-looking statements related to Scilex and its subsidiaries under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include statements regarding Scilex’s beliefs as to the extent of short selling and market manipulation of its stock and any potential violations of law and legal challenges with respect to the foregoing that are described in this press release.
Risks and uncertainties that could cause Scilex’s actual results to differ materially and adversely from those expressed in our forward-looking statements, include, but are not limited to: risks associated with the unpredictability of trading markets and whether a market will be established for Scilex’s common stock; general economic, political and business conditions; risks related to COVID-19 (and other similar disruptions); the risk that the potential product candidates that Scilex develops may not progress through clinical development or receive required regulatory approvals within expected timelines or at all; risks relating to uncertainty regarding the regulatory pathway for Scilex’s product candidates; the risk that Scilex will be unable to successfully market or gain market acceptance of its product candidates; the risk that Scilex’s product candidates may not be beneficial to patients or successfully commercialized; the risk that Scilex has overestimated the size of the target patient population, their willingness to try new therapies and the willingness of physicians to prescribe these therapies; risks that the outcome of the trials and studies for SP-102, SP-103 or SP-104 may not be successful or reflect positive outcomes; risks that the prior results of the clinical and investigator-initiated trials of SP-102 (SEMDEXA™), SP-103 or SP-104 may not be replicated; regulatory and intellectual property risks; and other risks and uncertainties indicated from time to time and other risks described in Scilex’s most recent periodic reports filed with the Securities and Exchange Commission, including Scilex’s Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q that the Company has filed or may file, including the risk factors set forth in those filings. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and Scilex undertakes no obligation to update any forward-looking statement in this press release except as may be required by law.
Contacts:
Investors and Media
Scilex Holding Company
960 San Antonio Road
Palo Alto, CA 94303
Office: (650) 516-4310
Email: investorrelations@scilexholding.com
Website: www.scilexholding.com
SEMDEXA™ (SP-102) is a trademark owned by Semnur Pharmaceuticals, Inc., a wholly-owned subsidiary of Scilex Holding Company. A proprietary name review by the FDA is planned.
ZTlido® is a registered trademark owned by Scilex Pharmaceuticals Inc., a wholly-owned subsidiary of Scilex Holding Company.
Gloperba® is the subject of an exclusive, transferable license to use the registered trademark by Scilex Holding Company.
ELYXYB® is a registered trademark owned by Scilex Holding Company.
All other trademarks are the property of their respective owners.
© 2024 Scilex Holding Company All Rights Reserved.
FAQ
What did Scilex Holding Company report to the SEC and FINRA regarding its stock?
Why did Scilex Holding Company send letters to the SEC and FINRA?
What is the significance of Scilex's action against 'naked short selling'?
How might Scilex’s actions impact its stock performance?
What is SEC Regulation SHO?
