Valeant Pharmaceuticals International, Inc. (TSX: VRX, NYSE: VRX, FRA: BVF, BMV: VRXN, SIX: VRX)
Superior Court of Quebec, Court File No.: 540-17-011743159
On October 26, 2015, Morganti & Co. with Faguy & Co. issued the first claim against Valeant Pharmaceuticals International Inc. (“Valeant”) across Canada. Subsequently, we teamed up with Siskinds LLP, Rochon Genova LLP, and others to advance, perhaps, the largest shareholder class action claim ever advanced under the statutory secondary market laws.
This securities class action relates to Valeant publishing core documents and making other statements containing misrepresentations regarding: (1) its policies and accounting practices in relation to the acquisition of new corporate entities; (2) its relationship with speciality pharmacies such as Philidor RX Services LLC and the business practices of those specialty pharmacies; and (3) its policies and accounting practices in relation to the recognition of revenue.
On August 27, 2017, the Plaintiffs’ Motion for Authorization was heard and granted, and subsequently the Court of Appeal denied the Defendants’ motion to appeal that decision. Since mid-2018, the parties have been engaged in discovery reviewing several hundred thousand pages of documents that are relevant to the claims.
Settlement with PWC:
On May 28, 2019, the Plaintiffs reached a partial settlement of the action, subject to Court approval, with defendant PricewaterhouseCoopers LLP (“PwC”) to settle the action as against PwC for the all-inclusive sum of CAD thirty million dollars ($30,000,000). A copy of that settlement agreement can be found here.
On September 5, 2019, The Honourable Justice Peter Kalichman of the Superior Court of Quebec authorized the class action under s. 575 of the Quebec Code of Civil Procedure as against PwC for the purposes of settlement and approved the form, content and mode of publication of the Notice of Authorization (Certification) and Settlement Approval Hearing (the “Notice”). A copy of the Court’s Order can be found here. A copy of the Court-approved Long Form Notice can be found here in English and in French and a copy of the Court-approved Short Form Notice can be found here.
On November 11, 2019, the Superior Court of Quebec approved the Settlement, the Plan of Allocation, and the fees and disbursements of Class Counsel. A copy of the Plan of Allocation can be found here in English and in French.
The Settlement requires that the parallel actions in Ontario and British Columbia be dismissed as against PwC and discontinued as against the other defendants before it becomes final. The Superior Court of Justice for Ontario granted an order dismissing the claim against PwC and discontinuing the balance of the claim on December 5, 2019. The motion to deal with British Columbia Action remains pending. For more information, please view the following documents:
Claim or Motion for Authorization issued: October 26, 2015 (Quebec) and November 16, 2015 (Ontario)
Class Period: February 28, 2013 to October 26, 2015
Trial Readiness Date: April 17, 2020
Shareholders’ Canadian Counsel: Andrew J. Morganti, Morganti & Co., and Shawn Faguy, Faguy & Co., with a larger syndicate of Canadian Counsel including Siskinds LLP and Rochon Genova LLP
Corporate Defendants’ Canadian Counsel: Osler, Hoskin & Harcourt LLP
Defendant Howard B. Schiller’s Canadian Counsel: Bennett Jones LLP
Auditor Defendant’s Canadian Counsel: Fasken Martineau DuMoulin LLP
Underwriter Defendant’s Canadian Counsel: Torys LLP
Corporate Defendants’ U.S. or European Counsel: Paul C. Curnin, Simpson Thacher & Bartlett, LLP; and Eric T. Vissichelli, McCarter & English, LLP