In its second and third quarter filings and earnings presentations in 2015 as well as its year-end report for that year, Valeant failed to disclose the impact of that allocation on its GAAP and non-GAAP financial measures, according to the Commission.
In a statement, SEC Enforcement Division Co-director Steven Peikin said, “Public companies and their senior executives have a duty to be truthful to investors. Complete disclosures are critical, and we must hold accountable corporate executives, who are in the best position to ensure accurate information is provided to investors.”
SEC Los Angeles Regional Office Director Michele Lane said, “Valeant’s former top executives chose to present GAAP and non-GAAP financial measures to indicate strong financial results, which misstated Philidor sales and included erroneous revenue allocations. When public companies and their senior executives tout strong financial measures, they must provide investors with all of the information needed to make fully informed investment decision.”