$VRX's latest legal challenge has intensified after fund manager Lord Abbett officially filed a securities fraud lawsuit against the company. The mutual fund company claims that it purchased the debt securities at an artificially high price due to misinformation given by Valeant. It claims $80 billion in investor losses.. http://alph.st/pbdb28f0
Not to excuse any criminal activity by Valeant, but Lord Abbett should have done a better job of evaluating Valeant. I certainly would not invest a dime in their funds.
Isn't debt security, bonds and notes? His fund lost $80b when the company was only able to scare up $30b in debt, and some has been paid off, while a good chunk was kicked down the road. Even if he did buy stocks at 250/share or so, he couldn't have lost more than Ackman or Lord Abbett's name would be all over the news as the biggest loser. So, his lack of due diligence can be covered up with a lawsuit. Frivolous, anyone? The judge is going to laugh him out of the courtroom. Scratching my head on this one.