Ana Ceballos
The state will file a federal lawsuit against Valeant Pharmaceuticals International over the $62 million it lost when it purchased company shares while Valeant allegedly ran a scheme that shielded it from competition and aggressively increased drug prices.
The Cabinet voted to pursue direct action against the drug company on Tuesday.
The State Board of Administration (SBA), which oversees the state’s investments, is looking to recover millions of dollars from the company that were lost in trading.
If the state opted to join a class action suit, instead of filing its own lawsuit, the estimate recovery would have been much less — about $390,000, according to staff analysis.
