Valeant, SAC Enemy, Settles SEC Allegations

Mar 18 2011 | 12:19pm ET

One-time hedge fund nemesis Valeant Pharmaceuticals continues to dig its way out of the mess it made as Biovail Corp.

The Canadian company this week settled Securities and Exchange Commission charges of accounting fraud at Biovail, four months after paying US$10 million to settle a countersuit filed by SAC Capital Advisors. Biovail, which bought Valeant last year, had accused SAC and others of conspiring to drive down its stock price.

Four years ago, Biovail settled another lawsuit stemming from its bookkeeping misdeed, paying $138 million to angry shareholders that accused it of doing the opposite of what it said SAC did: making false statements to buoy its stock price.

According to the SEC, Biovail and four of its current or former executives repeatedly overstated earnings and tried to hide losses from 2001 to 2003.

Former Biovail CFO Brian Crombie remains a defendant in the case; former CEO Eugene Melnyk settled for $150,000 last month without admitting any wrongdoing.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of