According to the Complaint, Bausch Health Companies, Inc. (“Bausch”) is a pharmaceutical company known for its majority ownership of Bausch + Lomb Corporation (“B+L”), which operates a successful eye health business consisting of Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals products.

In 2016, Bausch replaced its senior management and attempted to rebuild its reputation after it was revealed that it had engaged in one of the most egregious cases of securities fraud in U.S. history. Among other things, Bausch was forced to restate its financial statements, enter into a settlement with the SEC, and settle a class action with investors for a payment of more than $1.1 billion in November 2019.

On August 6, 2020, Bausch announced plans to spin-off B+L into its own publicly tradeable entity. Defendants at the time said that the benefits of the spinoff included “improved strategic focus and enhanced financial transparency.”

The Complaint alleges that Defendants made false and/or misleading statements about the Company’s spinoff of the Bausch + Lomb Corporation, including the benefits it would provide for Bausch shareholders and the effects it would have on Bausch post-spinoff. The Complaint also alleges that the spinoff was done not to benefit shareholders but instead to undermine plaintiff lawsuits stemming from securities laws violations in 2016.

On October 24, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on January 19, 2024. Defendants filed a Motion to Dismiss the amended Complaint on July 9.

On February 12, 2025, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.

Lead Plaintiff filed a second amended Complaint on March 14, 2025.