Valient Pharmaceuticals which is managed by CEO Michael Pearson has been accused of accounting fraud to cover its books from auditors. The company moved operations to Canada previously to take advantage of more favorable foreign tax rate. This is what is called reverse inversion.
Regarding the fraud. Citron Research said that a recent lawsuit is evidence that Valeant is creating invoices "to deceive the auditors and book revenue."
“Valeant/Philidor have created an entire network of phantom captive pharmacies” to create fake sales of drugs or to avoid scrutiny from auditors, Citron said.
R&O Pharmacy has sued Valeant. In a lawsuit filed in federal court in California, R&O said it had gotten a letter from Valeant’s general counsel on Sept. 4 indicating that it owed Valeant more than $69 million. It had never received a previous invoice from Valeant for any amount.
Valeant's price increase history became a major focus. It has been accused of price increases of some of its drugs from 2013 to 2015. The company spokesman responded to the charges by saying Valeant's company spokesperson said "Our duty is to our shareholders and to maximize value"
These are just some glaring examples of pharmaceutical fraud. In Valient’s case there are multiple incidences, but we have shown this is the case with pharmaceutical companies. They do not care about the consumer. If people died using their drugs so what. It is all about money. Over charge, make profits people die they don’t care.
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