Valeant (VRX) Legal Woes Will Continue to Weigh on Stock, Including Movement in Insider Trading Suit - Wells Fargo's Maris
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Wells Fargo analyst David Maris weighed in on Valeant Pharmaceuticals (NYSE: VRX), saying they continue to believe the Street is underestimating the potential downside from Valeant's many faceted legal woes.
Maris recalls there is a suit from T. Rowe Price and a separate class action suit with TIAA-CREF as the lead plaintiff, as well as investigations from the SEC, Southern District Court of NY, and IRS, among others.
"We are watching them all and have a particular interest in the insider trading suit filed against Valeant and Pershing Square related to their failed joint takeover attempt of Allergan," he commented. "Recently (9/23) we saw some action in this case, with the plaintiffs winning what is considered to be a key motion."
The analyst maintained an Underperform rating and valuation range of $17-$22.
Shares of Valeant Pharmaceuticals closed at $24.55 yesterday.
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Related EntitiesWilliam Ackman, Pershing Square Capital, Wells Fargo, David Maris
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