Federal prosecutors were already probing the way the Canadian company prices and distributes its drugs. Now Citron, a firm that actively bets against stocks and publishes negative research on companies, is claiming that Valeant could be the “pharmaceutical Enron.”
Citron believes a “web of deception” has involved creating “invoices to deceive auditors and book revenue.” Valeant has said the claims are erroneous, false and misleading and intended to manipulate the market.
The only way this can be settled is by investigators trawling through the masses of documentation available. It will then be an issue of who can make the strongest case from the evidence at their disposal.