Posted by & filed under Financial Reporting and Analysis, Fraud, MD&A.

Description: Quebec based Valeant Pharmaceutical suffered a punishing week on the stock markets this week with shares dropping for four days before recovering Friday. The drop had cost the CEO over a billion in market value of his shares. Valeant stemmed the tide by announcing it would hold a conference call to address suggestions it had inflated revenues.  Valeant had already been under the microscope by  Massachusetts and New York  for price hikes on drugs.

Source: Globeandmail.com

Date: October 23, 2015

Link: http://www.theglobeandmail.com/report-on-business/class-action-lawsuit-filed-against-valeant/article26948579/

Discussion Points:

1) What did you find most interesting about this article?

2) If you were an executive with Valeant, what strategy would you use in the conference call to restore confidence in your company?

3) if you were preparing the MD&A for Valeant, how would you address the negative publicity of these pricing and disclosure issues?

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