Valeant Faces Criminal Fraud Charges

Source: Wall Street Journal

Aug 11, 2016

Federal prosecutors are investigating whether Valeant Pharmaceuticals defrauded insurers by denying its ties to mail-order pharmacy, Philidor Rx Services.

According the to WSJ, the U.S. Attorney’s Office in the Southern District of New York is considering pursuing criminal charges against Valeant on grounds of insurance and wire fraud. Prosecutors are investigating whether Philidor made false statements to insurers about its connections to Valeant, sources said. Allegedly, Philidor helped patients get insurance coverage for higher-priced Valeant drugs, instead of lower priced alternatives.

The probe could lead to criminal charges against both Valeant as a company as well as former Philidor executives.

Read the WSJ article