Florida plans to sue Valeant Pharmaceuticals International for allegedly committing federal securities violations that caused a more than $62 million loss in the state's pension funds, according to Orlando Weekly.
The State Board of Administration, which oversees Florida's investments, on Tuesday decided to pursue legal action against Valeant separately from a class-action lawsuit with other stockholders. The board believes Florida will be able to recoup a higher proportion of their losses by filing a separate lawsuit.
Valeant is accused of committing federal securities violations to mark up drug prices and artificially increase sales. The New York City-based law firm Bernstein Litowitz Berger & Grossmann said Florida's $154 billion pension fund "incurred significant damages as a result of the fraudulent misrepresentations at Valeant" and identified at least $62 million in potential recoverable damages in a report to the state.
Lawyers plan to file the lawsuit in a federal court in New Jersey, where Valeant's U.S. headquarters is located, according to the report.