According to the law firm press release, the lawsuit alleges throughout the Class Period, Defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Valeant had deficient internal controls, (2) Valeant had a relationship with a network of specialty pharmacies used to boost Valeant’s sales of its high-priced drugs; (3) the use of specialty pharmacies left Valeant vulnerable to increased regulatory risks, (4) Defendants were under government scrutiny for its financial assistance programs for patients, pricing decisions and the distribution of its products, (5) Valeant faced the risk of scrutiny over its price increases, (6) without using specialty pharmacies, Valeant’s financial performance would be negatively impacted, (7) without using specialty pharmacies, Valeant’s Class Period performance would have been negatively impacted, (8) Valeant’s true relationship with Philidor and the extent of that relationship, (9) Valeant controlled Philidor, (10) Valeant’s subsidiary KGA had a secured lien interest on Philidor’s ownership, (11) Defendants were engaged in a scheme to manipulate Valeant’s stock price, and (12) as a result, Valeant’s public statements were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Plaintiffs filed a consolidated Complaint on June 24, 2016.
On April 28, 2017, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss.
On November 29, 2017 the Court issued a stay. All proceedings and discovery were stayed until the conclusion of the criminal trial in United States v. Tanner, et al., Case No. 17-cr-61, or by order of the Court. On June 5, 2018, the Court issued an Order lifting the stay.
Plaintiffs filed an amended consolidated Complaint on September 20, 2018. On October 5, the Court issued an Order dismissing four counts of the first amended Complaint. On January 14, 2019, Defendants filed a Motion to Dismiss the amended consolidated Complaint. On June 30, the Court issued an Order denying Defendants' Motion to Dismiss.
On September 10, 2019, the Court issued an Order appointing a Special Master. On December 16, the Company Issuer announced that it had settled the lawsuit for $1.2 billion, with payouts beginning in mid January 2020. On February 5, 2020, the Court granted preliminary approval of the Settlement. The Court granted final approval of the Settlement on January 31, 2021 and entered Final Judgment on February 5.
One of the class members filed a notice appealing the Court's judgment on March 1, 2021. On May 20, 2022, the Court of Appeals accepted the class member's stipulation of dismissal.