Bill Ackman's nightmare stock is getting stomped for the 2nd day in a row (VRX)

pulse

March 1, 2017 9:47 PM

Valeant reported in its 10k filing that the SEC is investigating its subsidiary Salix.

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Valeant Pharmaceuticals' stock is falling for the second day in a row on the release of the company's 10k filing.

In it, Valeant detailed a number of investigations into the company, including a previously disclosed SEC is investigation into the pharma company's subsidiary Salix, which Valeant acquired in 2015 for about $14.5 billion:

"The SEC is conducting a formal investigation into possible securities law violations by Salix relating to disclosures by Salix of inventory amounts in the distribution channel and related issues in press releases, on analyst calls and in Salix's various SEC filings, as well as related accounting issues. Salix and the Company are cooperating with the SEC in its investigation, including through the production of documents to the SEC Enforcement staff.

"The Company cannot predict the outcome or the duration of the SEC investigation or any other legal proceedings or any enforcement actions or other remedies that may be imposed on Salix or the Company arising out of the SEC investigation."

CNBC then reported the investigation as breaking, and confusion ensued. The company had resolved a similar suit with Federal officials from New York in 2016.

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