NEW YORK, Oct. 23, 2015 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities that purchased the securities of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”) (NYSE:VRX) between February 23, 2015 and October 20, 2015 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants failed to disclose adverse information about the Company’s business and prospects, including that (1) the Company was using a network of specialty mail-order pharmacies that it actually controlled to prop up sales of its high-priced drugs and to keep patients and their insurance companies from switching to less costly generic drugs; (2) the Company’s undisclosed use of specialty pharmacies left it subject to increased regulatory risks; and (3) without the use of the specialty pharmacies, the Company’s financial performance and Class Period financial guidance would have been negatively impacted.
On October 19, 2015, the Company hosted an earnings call during which, for the first time, Defendants revealed the previously undisclosed and direct relationship between the Company and certain specialty pharmacies. On this news, the price of the Company common stock fell over 10% in one day, from a close of $163.83 per share on October 19, 2015 to a close of $146.74 per share on October 20, 2015. Additional news concerning the Company’s relationships with specialty pharmacies reached the market on October 21, 2015, causing the price of the Company stock to drop sharply, falling to a close of $118.61 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than December 21, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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