When it ultimately became impossible to continue concealing the company's inability to meet its own earnings guidance, Biovail actively misled investors and analysts about the reasons for the company's poor performance." Biovail settled for US$10 million. In March 2008, the United States Securities and Exchange Commission (SEC) sued Biovail and some of its former officers, alleging that "present and former senior Biovail executives, obsessed with meeting quarterly and annual earnings guidance, repeatedly overstated earnings and hid losses in order to deceive investors and create the appearance of achieving earnings goals. SAC denied all the charges in Biovail's lawsuit and said that the decline in the Biovail's stock was due to earnings shortfalls and regulatory investigations. These four say they were let go after they complained to their superiors about Camelback's practices. Ĭamelback said those former employees were lying and disgruntled, that Anifantis and Ballash were fired because of unethical conduct Smith for poor performance Rosenblum was laid off. Darryl Smith, Mark Rosenblum, Demetrios Anifantis, and Robert Ballash, former Camelback employees, alleged that Camelback had allowed their client SAC to determine the content and timing of their reports on Biovail. In the spring of 2003, the hedge fund SAC asked them for a report on Biovail. The alleged conspiracy began with Camelback, an Arizona stock-analysis firm that advertises that it publishes impartial financial reports on companies to help investors evaluate stocks. According to Eugene Melnyk, "there's a group of people that got together and essentially attacked the company by putting out false reports, and we're just fighting back for our shareholders." In March 2006, CBS program 60 Minutes featured Biovail in a story about its lawsuit against hedge fund SAC Capital Partners and Camelback (now known as Gradient Analytics), among others. SAC/Gradient Analytics lawsuit and SEC complaint Legal issues Ī class action suit was filed against Biovail by investors who between December 14, 2006, and July 19, 2007, bought Biovail stock, alleging that the company had failed to disclose that the multi-dose study on depression drug Aplenzin would not be sufficient for the FDA to approve it. Michael Pearson as CEO, but was incorporated in Canada and temporarily kept Biovail's headquarters. The company retained the Valeant name and J. On September 28, 2010, Biovail merged with Valeant Pharmaceuticals ( Bausch Health). ( May 2023)Īs noted in the February 2009 Settlement Agreement with the Ontario Securities Commission: "Biovail admitted that it violated Ontario securities law and engaged in conduct contrary to the public interest." Relevant discussion may be found on the talk page. This section needs expansion with: details surrounding early history (1991 onwards).
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