Bausch Health Reaches $1.2-Billion Settlement in Securities Litigation
Bausch Health (formerly Valent Pharmaceuticals) has reached a $1.21-billion settlement in putative securities class action litigation initially brought against Valeant in a federal district court in New Jersey in October 2015. Valeant took the name of Bausch Health in 2018 after its eye-care product business, Bausch and Lomb.
The litigation, which has been referred to as the Valeant stock-drop case, so named after the company’s stock fell strongly during a period in which the plaintiffs in the case alleged that the company made false and misleading statements and/or failed to disclose the company’s business and prospects, including relating to drug pricing, and the company’s use of specialty pharmacies, according to the company’s 2018 annual filing in describing the litigation.
Once approved by a court, the settlement resolves and discharges all claims against Bausch Health, according to the company.
“Resolving this Action enables Bausch Health to close the door on one of the more meaningful and unpredictable liabilities associated with the legacy Valeant era,” said Joseph C. Papa, chairman and CEO of Bausch Health, in a December 16, 2019 press release. “The settlement of this case removes a cloud of uncertainty and ensures that current and future stakeholders will enjoy the benefits of the ongoing transformation of Bausch Health.”
The company says that “[a]s part of the settlement, the company and the other settling defendants admit no liability and deny all allegations of wrongdoing whatsoever.” The agreed settlement timing includes a payment schedule with the first funding in mid-January 2020. “Bausch Health believes that the Settlement marks an important step in its transformation and will not diminish its ability to continue to invest in its businesses,” said the company in its statement. The company says that the settlement does not impact the company’s current 2019 financial guidance.
Source: Bausch Health