, Columnists
Valeant May Be Tip of Accounting Iceberg
As the credit cycle turns, analysts expect to see more instances of flawed books.
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Abbott Laboratories may be worried it has another Valeant on its hands. And investors should be on the lookout for future look-a-likes.
The $58 billion medical-device company has raised "serious concerns" about the accuracy of financial information provided by Alere as part of their $8.4 billion merger agreement. That deal was announced just three months ago, but it's been a busy three months. Alere has since been subpoenaed by the Justice Department in connection with its sales practices in some foreign areas and has repeatedly pushed back the filing of its annual report. This came on top of an SEC investigation disclosed in November, before terms with Abbott were finalized.