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-approved Long Form Notice can be found here in English and in French.
On November 11, 2019, a hearing will be held at 9:30 am at the Montreal courthouse, 1 Notre-Dame St. E., Montreal Quebec (the “Approval Hearing”), wherein the Court will determine whether it will approve the settlement agreement, approve class counsel’s requested fees and disbursements, and approve the proposed Plan of Allocation. A copy of the proposed Plan of Allocation can be found here in English and in French. Class Members who object to the Settlement Agreement should send in objections, in written form, to Siskinds LLP (Suite 302, 100 Lombard Street, Toronto, Ontario, M5C 1M3) by no later than November 5, 2019 and should include:
- the person’s full name, current mailing address, fax number, telephone number and email address, as may be available;
- the number of shares purchased between February 27, 2012 to November 12, 2015, and held at any point in time between October 19, 2015 and November 12, 2015;
- a brief statement of the reasons for the objection; and
- whether the person or a representative intents to appear at the Approval Hearing in person or by counsel, and if by counsel, the name, address, telephone number, fax number and email address of counsel.
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