July 31, 2020
Canadian company
Bausch Health, formerly known as
Valeant Pharmaceuticals, will pay a
$45 million penalty to resolve charges that its executives engaged in improper revenue recognition and misleading disclosures in SEC filings and earnings presentations between 2014 and 2015. The company was alleged to have recorded false sales of products to specialty pharmacy Philidor Rx Services and its affiliates, which were controlled by Valeant. In addition, Valeant allegedly misrepresented the source and materiality of revenue it received following a 500% increase in the price of its diabetes drug Glumetza. Former CEO
J. Michael Pearson will pay a civil penalty of $250,000; former CFO
Howard B. Schiller will pay a civil penalty of $100,000; former controller
Tanya Carro will pay a civil penalty of $75,000. The individuals also agreed to return specified portions of their incentive compensation to the company.
SEC