Investment Firm That Held Stake In Valeant Sued By Investors

Shares of

continued its downward trend on Monday and are now lower by 16 percent since the start of 2016 and lower by nearly 45 percent over the past year. The large losses in Valeant Pharmaceuticals' stock has prompted a group of investors to sue an investment firm that saw more than $2 billion in losses from the stock. According to

, investors who bought into the Sequoia Fund are suing the fund's portfolio managers - Robert Goldfarb and David Poppe, along with 2 directors for letting the fund amass a stake in Valeant Pharmaceuticals that represented 32 percent of all assets under management in August. The suit accused the fund managers as being "akin to a gambler at the race track betting more than one quarter of his net worth on a fast horse with a history of maladies and with improbably high odds." The lawsuit seeks to recoup damages and management fees for the fund.