The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:T. Rowe Versus the Pharmaceutical Enron Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, August 19, 2016

T. Rowe Versus the Pharmaceutical Enron

News summary by MFWire's editors

Lawyers for T. Rowe Price [profile] are attacking the same now-infamous Canadian pharmaceutical company whose recent misfortunes have plagued another famous mutual fund shop.

William J. Stromberg
T. Rowe Price
Chief Executive Officer
On Monday in federal court in New Jersey, Baltimore-based T. Rowe and Alleghany filed a lawsuit against beleaguered Valeant Pharmaceuticals International, accusing Laval, Quebec-based Valeant and current and former top Valeant executives of perpetrating a "fraudulent scheme" that wiped out "billions in shareholder value." The complaint notes "that media and commentators have dubbed [Valeant] the 'Pharmaceutical Enron'."

The Baltimore Business Journal, the Financial Times, Fortune, Reuters, USA Today, and the Wall Street Journal all covered T. Rowe's lawsuit.

Valeant issued a statement on the new suit, saying that the complaint "repeats allegations and claims" found in a suit filed by TIAA-CREF in October:

As with the original complaint, which was filed in October 2015, Valeant intends to defend itself and cannot comment further on ongoing litigation.

By the FT's count, Valeant's market capitalization has fallen from $90 billion in August 2015 to $11 billion today, an 87.8-percent drop.

T. Rowe and TIAA aren't the only mutual fund shops feeling the Valeant burn. Ruane Cunniff and Goldfarb's Sequoia Fund was once Valeant's biggest shareholder, and this spring RCF's CEO retired in the wake of Valeant's big plunge. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use