Canadian Pharmaceutical Company Launches 4.6 billion dollar lawsuit against Wall Street hedge funds and others.
An interesting story from our neighbor to the north…
Biovail Corp., Canada’s largest drug maker, has filed a 4.6 billion dollar lawsuit in New Jersey state court alleging that it has been the target of a “massive and fraudulent disinformation campaign" aimed at driving down the company’s stock value. The complaint alleges that 22 defendants, including Wall Street hedge funds, investment research companies, and an analyst, violated various state laws (including New Jersey's racketeering law) by conspiring in 2003 and 2004 to drive down the price of Biovail shares and profit from the drop by short-selling the stock.
Spokesmen for the various defendants have labeled Biovail’s suit “outrageous and defamatory” and “patently false” and malicious.”
A few links to this developing story can be found here and here.