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

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note