Articles Tagged with Lord Abbett

Lord Abbett is suing Valeant Pharmaceuticals contending that the defendant violated New Jersey’s RICO law. The institutional investor is claiming $80B in losses. By invoking the state’s RICO law, Lord Abbett could seek a penalty three times greater than the actual losses it allegedly suffered when the pharmaceutical company’s share price went down.

According to the mutual fund company, it purchased Valeant’s debt securities at a price that was artificially inflated after the pharmaceutical company provided it with information that wasn’t correct. Now, Lord Abbett is alleging violations of RICO law in NJ, which is where Valeant is headquartered.

The institutional investor is not the only party to file a RICO case against Valeant. The other complaints are primarily over allegations that the pharmaceutical company committed fraud by engaging in business practices that were deceptive, including charging too much for drugs. These plaintiffs are claiming hundreds of millions of dollars of losses.

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