Valeant Plummets Amid SEC Investigation, Exec Departure

Source: Bloomberg

Mar 03, 2016

Shortly after announcing the immediate return of CEO Michael Pearson from a two-month medical leave, Valeant withdrew a financial forecast, delayed the release of fourth-quarter results and revealed that it has been under investigation by the Securities and Exchange Commission.

Reuters sources report that the SEC investigation is focused on the Valeant's relationship with specialty pharmacy Philidor RX Services and was triggered by Valeant’s own request that the SEC investigate a short seller's allegations. Valeant shares plummeted 18 percent after Monday's news.

On Thursday, Executive Vice President Deb Jorn, who oversaw Valeant's U.S. dermatology and gastrointestinal business, resigned for personal reasons.

Read the Bloomberg article