Case Info
Valeant Pharmaceuticals Unethical Business Practices
Valeant Pharmaceuticals, now operating as Bausch Health Companies Inc., faced accusations of drastically inflating the costs of vital medications through deceptive practices. These included price gouging and utilizing a covert network of Valeant-controlled pharmacies to artificially boost both the prices and the prescription volume of its drugs. These strategies, utilized between 2013 and 2015, made Valeant highly profitable, driving its stock price from $15 to over $262 per share while leaving many investors unaware of the company’s unethical and illegal business practices.
The company drew significant media and regulatory scrutiny as the impact of its prescription pricing practices came to light. A 2015 analysis examined drugs whose prices had increased from 300 percent to 1,200 percent over the prior two years. Among the 19 drugs with the most significant price hikes, half were owned by Valeant. Following these revelations, Valeant’s stock price plummeted, causing massive financial losses for investors.
Lawsuit Against Valeant Pharmaceuticals
In the aftermath, numerous investors initiated legal action against Valeant Pharmaceuticals. They alleged the company engaged in fraudulent practices by misrepresenting its business operations and financial condition. Valeant was accused of violating federal securities laws, with plaintiffs claiming it misled investors through deceptive statements and omissions in public filings. These actions resulted in substantial financial losses for those affected.
After five years of litigation, the case culminated in a securities class action, resulting in the largest settlement ever against a pharmaceutical company and ranking among the top 10 securities settlements in U.S. history. Seeger Weiss’ founding partner Christopher Seeger and partner David Buchanan served as co-counsel for certain plaintiffs in the class action. Partner Jennifer Scullion also played a key role as liaison counsel. Their efforts helped secure a $1.2 billion settlement for investors included in the class.