December 15, 2015
Bernstein Liebhard LLP announced that only six days remain for investors to file a motion for lead plaintiff in a class action pending in the United States District Court for the District of New Jersey on behalf of purchasers (the “Class”) of securities of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”) (NYSE: VRX) during the period of February 28, 2014 and October 21, 2015, inclusive (the “Class Period”). The action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers.
Valeant is currently facing investigations of its medication-pricing and distribution policies by federal prosecutors in Massachusetts and New York, and by the Senate Special Committee on Aging.
On October 19, 2015, Valeant hosted an earnings conference call with investors, during which the Company revealed a previously undisclosed relationship between Valeant and specialty pharmacy Philidor Rx Services (“Philidor”). On October 21, 2015, Citron Research issued a report on Valeant asserting, among other things, that Valeant and Philidor created an entire network of phantom captive pharmacies to create fake sales of drugs or to avoid scrutiny from auditors. Following this news, shares of Valeant plummeted to close at $118.61 on October 21, 2015.
On October 30, 2015, after additional reports emerged of Philidor modifying prescriptions to gain insurers’ approval and companies such as CVS and Express Scripts dropped Philidor from their networks, Valeant finally announced that it was severing ties with Philidor. The Company cited a loss of confidence in Philidor’s ability to operate in a manner acceptable to patients and doctors. Following this news, Standard & Poor’s lowered the Company’s credit rating to “B+” from “BB-”.
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose adverse information about the Company’s business, including that: (1) Valeant had deficient internal controls; (2) Valeant was using a network of specialty mail-order pharmacies that it actually controlled to prop up sales of its high-priced drugs and to keep patients and their insurance companies from switching to less costly generic drugs; (3) Valeant’s undisclosed use of specialty pharmacies left it subject to increased regulatory risks; and that (4) without the use of the specialty pharmacies, Valeant’s financial performance and Class Period financial guidance would be negatively impacted.
Plaintiffs seek to recover damages on behalf of all Class members who purchased Valeant securities during the Class Period. If you purchased Valeant securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than December 21, 2015.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Valeant shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of New Jersey.