U.S. prosecutors are investigating Michael Pearson, the former CEO of Valeant, in connection to fraud at the pharmaceutical giant, according to Bloomberg.
The stock is down 6% on the news.
Pearson helmed Valeant Pharmaceuticals during its glorious rise to become one of Wall Street’s darling stocks. He used a combination of serial acquisitions and drug price hikes to achieve that.
Then last October, accusations of accounting malfeasance from short seller Andrew Left of Citron Research combined with government scrutiny over the company’s drug price hikes combined to bring the company to its knees. Valeant’s stock price is down around 90% since last year’s peak.
US prosecutors are also looking into the company’s former CFO, Robert Schiller, according to reports.
This is mostly related to Philidor, the secret pharmacy attached to Valeant that was revealed in the fallout of the Left’s accusations.
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