VRX INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Against Valeant Pharmaceuticals International, Inc.

SAN FRANCISCO--()--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of investors who purchased or otherwise acquired the publicly traded common stock of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”) (NYSE: VRX) between February 28, 2014 through October 21, 2015, inclusive (the “Class Period”).

“Valeant: Could this be the Pharmaceutical Enron?”

If you purchased or otherwise acquired the publicly traded common stock of Valeant during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 21, 2015. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Valeant investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.

Background on the Valeant Securities Class Litigation

The action charges Valeant and certain of its senior executives with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Valeant is a specialty pharmaceutical and medical device company that develops, manufactures, and markets a range of branded, generic, and branded generic pharmaceuticals, over-the-counter products, and medical devices.

The action alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information about the Company’s business and prospects, including: (1) that Valeant was using a network of specialty mail-order pharmacies that it actually controlled to prop up sales of its high-priced drugs and to keep patients and their insurance companies from switching to less costly generic drugs; (2) that Valeant’s undisclosed use of specialty pharmacies left it subject to increased regulatory risks; and (3) that without the use of the specialty pharmacies, Valeant’s financial performance and Class Period financial guidance would have been negatively impacted.

On September 28, 2015, Bloomberg reported that Democrats in the U.S. House of Representatives sought to subpoena Valeant for documents related to “massive price increases” for two drugs used to treat heart conditions. On this news, the price of Valeant stock dropped $32.97 per share, or 16.53%, from its closing price on September 25, 2015 to close at $166.50 on September 28, 2015.

On October 14, 2015, Valeant disclosed that it had recently received subpoenas from two U.S. Attorney’s Offices primarily seeking “documents with respect to our patient assistance programs, and also include requests relating to financial support provided by the company for patients, distribution of the company’s products, information provided to the Centers for Medicare and Medicaid Services, and pricing decisions.” Following this news, Valeant stock fell $8.42 per share, or 4.75%, to close at $168.87 on October 15, 2015.

On October 19, 2015, during Valeant’s earnings conference call, defendants revealed previously undisclosed and direct relationship between Valeant and certain specialty pharmacies. On this news, the price of Valeant common stock fell $17.09 per share, or 10.43%, to close at $146.74 on October 20, 2015. On the following day, Citron Research published a report titled “Valeant: Could this be the Pharmaceutical Enron?” that posited that Valeant was using its relationship with specialty pharmacies to store inventory and record those transactions as sales and that it was using phantom accounts to deceive auditors and investors. On this news, Valeant’s stock price fell an additional $28.31 per share, or 19.17%, to close at $118.61 on October 21, 2015, on extremely heavy trading volume.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.

The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for twelve years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms, including in 2015.

For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Source/Contact for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 1-800-541-7358

Recent Stories

RSS feed for Lieff Cabraser Heimann & Bernstein, LLP

Website

Release Summary

Class action litigation has been brought for investors who acquired the publicly traded common stock of Valeant Pharmaceuticals International, Inc. (NYSE: VRX) between 2/28/14 through 10/21/15.

Lieff Cabraser Heimann & Bernstein, LLP