Valeant Being Sued In NY Federal Court Over Alleged Overcharges

Buyers of Valeant Pharmaceuticals Intl Inc VRX drugs sued the company on Monday, claiming that they had been forced to pay excessive prices due to the company’s relation to Philidor Rx Services.

According to the complaint, the Pennsylvania-licensed specialty online pharmacy helped the Canadian firm increase its sales, violating the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The complaint, filed in the U.S. District Court in Manhattan, seeks compensatory and triple damages, reports have assured.

Among the defendants is Andrew Davenport, Philidor’s former CEO. Plaintiffs include the health benefits fund of New York’s hotel trade group, and detectives endowment association of New York City.

Shares of Valeant traded down $0.57 or 1.85 percent to $20.27 at the time of the writing of this article.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.