Valeant Pharmaceuticals, parent company of Bausch + Lomb, is denying allegations of improper accounting from an investor who is betting against the company.
According to the Wall Street Journal, the short-seller’s report knocked Valeant’s stock down 40% on Wednesday—wiping some $20 billion from its market value—before the stock made up some of the loss after analysts expressed support and shareholder William Ackman jumped in to buy more stock.
The report, from research firm Citron Research raised questions about Valeant’s use of certain pharmacies to supply its drugs and its accounting for the dispensing.
After the stock plunge, Valeant “categorically” denied the report and according to the WSJ said that its “false and misleading statements about Valeant appear to be an attempt to manipulate the market” to drive down the stock.
Asked about that, Citron founder Andrew Left told the Journal, “I believe their disclosures are false and misleading with an attempt to manipulate the market—we have that in common. The only difference is I can prove my points.”
Valeant stock ended the day off 19% at $118.61
