Shares in Valeant pharmaceutical company shed more than 12% Monday after a report from Bloomberg that U.S. prosecutors are concentrating on the company’s previous CEO and CFO to assemble a fraud case that could prompt charges. Former Valeant Pharmaceuticals CEO Michael Pearson and previous CFO Howard Schiller are allegedly at the center of an accounting fraud case, Bloomberg reported.
Valeant conveyed an announcement, saying that they are in contact and co-working with U.S. authorities.
“We do not comment on rumors about investigations, and cannot comment on or speculate about the possible course of any ongoing investigation. Valeant takes these matters seriously and intends to uphold the highest standards of ethical conduct.”
Laval, Quebec-based Valeant’s U.S.- recorded shares were down $2.91 at $24.41. It topped at $263.81 a year back.
Worry about ongoing investigations, which concentrated on its drug pricing and accounting practices, had officially cut its share cost by around 90 percent in one year. The company was briefly the most valuable enterprise in Canada.