SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP has commenced an investigation into whether certain officers and directors of Valeant Pharmaceuticals International, Inc. (NYSE:VRX) violated federal securities laws.
On October 21, 2015, Citron Research issued a report entitled “Could this be the Pharmaceutical Enron?” Citron Research’s report claims that Valeant utilizes a specialty pharmacy to facilitate drug sales to patients. The same report continued, stating that “Citron believes the whole thing is a fraud to create invoices to deceive the auditors and book revenue. PHANTOM ACCOUNTS.” Valeant fell over 28% in early morning trading on October 21, 2015.
This new Citron Research report comes on the heels of an October 2, 2015, Citron Research report titled “Citron Research Exposes the Information that Congress Will Find if it Subpoenas Valeant.”
The October 2, 2015 Citron Research report references the United States Congress’s failed attempt to obtain documents from Valeant that would justify the 525% and 212% price increases on two drugs the Company had acquired rights to, saying the requested information was “highly proprietary and confidential.” The Congressmen that had requested this information from Valeant then sent a letter to the Republican chairman of the House Committee on Oversight and Government Reform asking him to issue a subpoena compelling Valeant to furnish the documents.
Additionally, the October 2, 2015 Citron Research report alleges that Valeant has misled investors about the Company’s true organic growth by employing a strategy that trashes the long-term earning power of their drug portfolio in an ever-more-desperate strategy of "making the quarter".
Johnson & Weaver’s investigation will seek to determine whether shareholders were harmed by fraud and deception as the Citron Research reports claim.
If you have information that could assist in this investigation, or if you are an Citron shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (firstname.lastname@example.org) by email or by phone at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.