T. Rowe Price Group, one of the largest investment managers in the world, is suing Valeant Pharmaceuticals over billions of dollars it lost due to the Canadian drugmaker's alleged 'fraudulent scheme,' reported Reuters.
The investment company filed a lawsuit against the company in the District Court of New Jersey on Monday. T. Rowe Price claimed Valeant used a secret pharmacy network, deceptive pricing and reimbursement practices, and false accounting to protect the company's drugs from generic competition and drive up revenues and profits. T. Rowe Price held a 6.4 percent stake in Valeant as of Dec. 31.
Valeant stock has lost almost 90 percent of its value since 2015 after the drug giant was tied to Philidor RX, a specialty pharmacy that allegedly used aggressive tactics to get insurers and pharmacy benefit managers to pay reimbursements for Valeant's costly medications, reported The Wall Street Journal.
The lawsuit follows last week's announcement that lawyers at the U.S. Attorney's Manhattan, N.Y., office were investigating whether Valeant hid its relationship with Philidor from insurers.