Valeant Pharmaceuticals: Aggressive Accounting Games

Valeant Pharmaceuticals: Aggressive Accounting Games

By
Maureen McNichols, Jaclyn Foroughi
2017|Case No.A229| Length 33 pgs.

In February 2008, as world markets slid deeper into economic decline, J. Michael Pearson joined Valeant Pharmaceuticals, a specialty pharmaceuticals company, then based in a quiet suburb of southern California. By August 2015, the stock price peaked, valuing the company at nearly $90 billion, up from $2 billion in 2008. In that time, Valeant had made over 100 acquisitions with total revenues growing from roughly $750 million in 2008 to over $10 billion in 2015. The explosive growth of Valeant in just seven-and-a-half years was not without purpose.

Learning Objective
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