The company logo of Valeant Pharmaceuticals International is seen at its headquarters in Laval, Quebec May 19, 2015. REUTERS/Christinne Muschi
The class action lawsuits keep piling up, including the latest filed against Valeant Pharmaceuticals.
The class action has been started because shareholders are alleging that the company neglected to let them know that they had dealings with Philidor Rx Services, a U.S. pharmacy, and as a result they suffered losses.
Further allegations state that Valeant secretly negotiated and bought an option to purchase Philidor back in January 2013. Valeant then united the two companies, but failed to inform the shareholders until October 19, 2015.
Once the announcement of the consolidation of the two companies was made, the price of shares allegedly “dropped considerably.” Apparently, Valeant shares have dropped by a whopping 70 per cent since last August due to supposedly questionable business practices.
The lawsuit was initiated by Toronto based law firm, Koskie Minsky LLP and has been filed in Ontario Superior Court. The suit covers all shareholders who bought shares of the company from between January 1, 2013 to a few weeks ago.
Valeant has since separated itself from Philidor and the company is still working on a response to the new class action.