Monday, 20 February 2017
Last updated 2 days ago
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.