There’s more bad news for the embattled pharmaceutical company Valeant.
Shares plunged 8% in after-hours trading Monday when a report from the Wall Street Journal said the company might have to restate some financial results after it finishes an internal investigation.
Valeant had hired a high-powered law firm to review its relationship with the now defunct pharmacy Philidor. The company severed ties with Philidor last year and has been accused of using the pharmacy to generate “phantom sales.” Valeant has denied those claims.
Shares have plunged nearly 20% since Friday when a Wells Fargo analyst came out with a critical research note on the company.
Valeant stock has been struggling since October when a short-selling firm accused the company of massive fraud, similar to what doomed Enron. Federal prosecutors are investigating the way it prices and distributes drugs.
The company did not respond to a request for comment for this story.