Bausch Health Companies
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Basuch Health Companies Inc. (“Bausch” or the “Company”) (NYSE: BHC) securities during the period from August 6, 2020 through May 3, 2023 (the “Class Period”). Investors have until September 25, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Bausch, the successor entity of Valeant Pharmaceuticals International, Inc., is a pharmaceutical company known for its majority ownership of Bausch + Lomb Corporation (“B+L”). B+L operates a successful eye health business consisting of Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals products.
On May 4, 2021, during a pre-market earnings conference call, Bausch discussed the leverage ratios of both Bausch and B+L, revealing that B+L would be stronger financially than Bausch post-spinoff. Bausch also revealed that its CEO and CFO would be transitioning from Bausch to B+L. On this news, the price of Bausch shares declined by $3.48 per share, or approximately 11.08%, from $31.42 per share to close at $27.94 on May 5, 2021.
Between May 6 and 10, 2022, B+L began trading and Bausch issued a press release announcing its earnings for the first quarter of 2022, revealing weak financial results. According to analysts, Bausch’s earnings were indicative of additional delays for the distribution of B+L shares from the spinoff. On this news, the price of Bausch shares declined by $3.14 per share, or approximately 19.58%, from $16.04 per share on May 6, 2023 to close at $12.90 on May 9, 2022.
Between July 28 and 29, 2022, Bausch suffered an additional setback for its business when it received negative news in connection with an ongoing litigation dispute over its use of the Xifaxan patent, which suggested that Bausch would have a shortened period of exclusive use and, in turn, face additional revenue shortfalls. This development indicated additional delay for the B+L spinoff share distribution. On this news, the price of Bausch shares declined by $3.58 per share, or approximately 41.24%, from $8.68 per share to close at $5.10 on July 28, 2022.
On May 4, 2023, Bausch announced negative earnings results for its first quarter of 2023, which indicated further delay of the B+L share distribution. According to analysts, the probability of a distribution was now less than 50% and, without any mention of it from management, the likelihood of it occurring in the near term was low. On this news, the price of Bausch shares declined by $1.51 per share, or approximately 20.41%, from $7.40 per share to close at $5.89 on May 4, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements about the Company's spinoff of the Bausch + Lomb Corporation ("B+L"), including the benefits it would provide for Bausch shareholders and the effects it would have on Bausch post-spinoff. The complaint also alleges that the spinoff was done not to benefit shareholders but instead to undermine plaintiff lawsuits stemming from securities laws violations in 2016.
Bausch, the successor entity of Valeant Pharmaceuticals International, Inc., is a pharmaceutical company known for its majority ownership of Bausch + Lomb Corporation (“B+L”). B+L operates a successful eye health business consisting of Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals products.
On May 4, 2021, during a pre-market earnings conference call, Bausch discussed the leverage ratios of both Bausch and B+L, revealing that B+L would be stronger financially than Bausch post-spinoff. Bausch also revealed that its CEO and CFO would be transitioning from Bausch to B+L. On this news, the price of Bausch shares declined by $3.48 per share, or approximately 11.08%, from $31.42 per share to close at $27.94 on May 5, 2021.
Between May 6 and 10, 2022, B+L began trading and Bausch issued a press release announcing its earnings for the first quarter of 2022, revealing weak financial results. According to analysts, Bausch’s earnings were indicative of additional delays for the distribution of B+L shares from the spinoff. On this news, the price of Bausch shares declined by $3.14 per share, or approximately 19.58%, from $16.04 per share on May 6, 2023 to close at $12.90 on May 9, 2022.
Between July 28 and 29, 2022, Bausch suffered an additional setback for its business when it received negative news in connection with an ongoing litigation dispute over its use of the Xifaxan patent, which suggested that Bausch would have a shortened period of exclusive use and, in turn, face additional revenue shortfalls. This development indicated additional delay for the B+L spinoff share distribution. On this news, the price of Bausch shares declined by $3.58 per share, or approximately 41.24%, from $8.68 per share to close at $5.10 on July 28, 2022.
On May 4, 2023, Bausch announced negative earnings results for its first quarter of 2023, which indicated further delay of the B+L share distribution. According to analysts, the probability of a distribution was now less than 50% and, without any mention of it from management, the likelihood of it occurring in the near term was low. On this news, the price of Bausch shares declined by $1.51 per share, or approximately 20.41%, from $7.40 per share to close at $5.89 on May 4, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements about the Company's spinoff of the Bausch + Lomb Corporation ("B+L"), including the benefits it would provide for Bausch shareholders and the effects it would have on Bausch post-spinoff. The complaint also alleges that the spinoff was done not to benefit shareholders but instead to undermine plaintiff lawsuits stemming from securities laws violations in 2016.