corporate governance

Deep Track Capital (14.82% DVAX shareholder) condemns ISS’s favorable review of Dynavax’s board ahead of its 2025 Annual Meeting, urging governance reforms and new directors. It cites ISS’s alleged dismissal of critical issues: Heplisav’s missed 2024 sales ($275M target) and market share decline (43% Q1 2025), lax capital allocation, and a staggered board structure. Dynavax’s 23% YTD stock drop and 40-point TSR lag vs. Nasdaq Biotech Index underscore concerns. Deep Track criticizes ISS for overlooking governance gaps and misrepresenting settlement talks, advocating for nominees with vaccine expertise to drive strategic shifts. The clash reflects broader activist pressure on biotech governance.

Shenlan Technology, once a $2.23B AI unicorn, faces mounting crises as over 100 ex-employees pursue legal action against founder Chen Haibo, securing court-imposed travel bans over unpaid wages. The company dissolved its Shenzhen workforce in 2024 despite a 2023 payment agreement, citing conflicting financial claims about IPO preparations. Courts rejected Chen’s appeal, holding him accountable as legal representative amid accusations of evading operational duties. Shenlan countersued ex-staff for alleged non-compete breaches, while its nine-figure Pre-IPO funding and alleged inflated revenue claims (¥100M actual vs. promoted billions) deepen credibility concerns. Prolonged IPO delays and unresolved labor disputes expose governance risks, reflecting systemic issues in China’s hypercompetitive AI sector.