Valeant Falls on Report of Criminal Probe Into Philidor Ties
- Drugmaker says it’s cooperating with U.S. Attorney’s office
- Prosecutors investigating whether Valeant defrauded insurers
Valeant Falls on Report of Criminal Probe
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Valeant Pharmaceuticals International Inc. fell the most in more than a month following a report that it’s the target of a criminal probe by federal prosecutors, who are investigating whether the drugmaker defrauded insurers by hiding its ties to a mail-order pharmacy.
The prosecutors are pursuing an unusual legal theory that Valeant and the now-defunct pharmacy, Philidor Rx Services LLC, allegedly defrauded insurers by concealing their close relationship, the Wall Street Journal reported Wednesday, citing unidentified people familiar with the matter.