Ana Ceballos
The state will again consider whether it should pursue action against Valeant Pharmaceuticals International, a drug company accused of running a scheme that shielded it from competition and artificially boosted drug prices and sales.
The matter was discussed Wednesday at a Cabinet aides meeting before Gov. Rick Scott and the Florida Cabinet meet next Tuesday.
According to a staff analysis, the State Board of Administration (SBA) – which oversees the state’s investments – lost over $62 million in its purchases of Valeant shares in the midst of the alleged scheme.
If Scott and the Cabinet approve a resolution to file direct action against the company, the SBA could recover millions of dollars.
Maureen Hazen, the general counsel for the SBA, is recommending the agency opt out of a class action case against the pharmaceutical company.
Instead, she said, the state should file its own case in federal court in New Jersey. There’s more money in it for the state, Hazen argued.
“In my opinion, the SBA may be able to enhance its recovery above the class action recovery by double-digit millions of dollars,” Hazen said in a memorandum.
If the class action is pursued, however, the estimated recovery would be only about $390,000, according to the staff analysis.
The resolution has been presented to the Cabinet in the past, but Attorney General Pam Bondi asked for more time to review it.
