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Valeant Falls Following Report Of SEC Investigation That Was Already Announced

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Valeant Falls Following Report Of SEC Investigation That Was Already Announced

"Fake news" strikes again — and this time spooks Valeant Pharmaceuticals Intl Inc (NYSE: VRX) investors.

Shares fell 5 percent Wednesday afternoon following a Reuters report "announcing" the SEC’s investigation of Salix for possible securities law violations. However, the case had been disclosed more than a year ago in a Valeant 10-K.

The SEC's scrutiny is related to Salix’s accounting procedures and the amount of inventory in its distribution channel. Valeant has long been weighted down by Salix, which has been up for sale since November to alleviate the company's heavy debt load.

See Also: Valeant's Gudiance Looks Conservative

On top of its ongoing issues with the unit, Valeant is enduring heat from U.S. prosecutors targeting its ex-CEO and ex-CFO on charges of possible accounting fraud related to its Philidor relationship. It's also fighting a reputation of instability and riskiness after its CFO and two executive vice presidents departed in December.

Shares closed at $13.63, down 5.2 percent.

Posted-In: Philidor Reuters salixNews Legal Movers Best of Benzinga

 

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