Type of Claim: Opt-out of US class action
Claim Period: 4 January 2013 – 10 November 2016
Defendants: Valeant Pharmaceuticals International Inc, et al
Jurisdiction: United States District Court, District of New Jersey
Governing Law: United States federal laws
Opt-out deadline: No deadline has been set as class yet to be certified. However, the five-year “statute of repose” is running.
Valeant is a Canadian specialty pharmaceutical and medical device company that trades on the New York Stock Exchange (NYSE: VRX (now BHC)). Its United States headquarters are in Bridgewater, New Jersey.
Valeant’s success in recent years was publicly attributed to its numerous acquisitions of rival drug companies, followed by dramatically increasing their drug prices. However, Valeant’s business model drew the attention of US lawmakers and fuelled public outrage against skyrocketing drug prices.
In the summer of 2015, Valeant’s accounting practices and complex relationships with the pharmacies through which Valeant distributed its drugs began to raise significant questions about the adequacy of Valeant’s financial disclosures. Indeed, the resulting investigations led to both public and private claims of fraud. Between 28 September 2015 and 21 October 2015, in response to revelations of the alleged fraud, Valeant’s stock price dropped by a total of $80.86 per share, or 40.5%, for a total market capitalisation loss of $27.74bn, causing significant losses to Valeant investors.
A class action (15-CV-07658), as well as a series of direct action complaints, has been filed in federal court in New Jersey.
Stewarts believes that clients with significant losses (>$25m) may be able to maximise their recovery by opting out of the US class action and filing a direct-action complaint.
Stewarts is prepared to perform a confidential damages analysis free of charge and without obligation for clients. In order to undertake that analysis, Stewarts requires clients to provide their transactional data.
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