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Valeant Said to Be Under Criminal Investigation, WSJ Reports

Valeant Pharmaceuticals International Inc. is the subject 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 Wall Street Journal reported.

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The lawyers, in the U.S. attorney’s office in Manhattan, are pursuing an unusual legal theory, previously unreported, that Valeant and the closely linked mail-order-pharmacy, Philidor Rx Services LLC, allegedly defrauded insurers by hiding their close relationship, the Journal said, citing unidentified people familiar with the matter.

A Valeant representative didn’t immediately respond to a request for comment.