(Reuters) – Bausch Health Cos. Inc. has agreed to pay $ 45 million, and three former top executives also accepted penalties for resolving misrepresentation fees and misleading information in U.S. government applications, the U.S. Securities and Exchange Commission said Friday.
Canadian-based Bausch Health, formerly known as Valeant Pharmaceuticals, incorrect income transactions and included incorrect income distributions in applications and performance presentations, the SEC said in a statement.
The company's former CEO, CFO and controller used non-standardized financial measures to allocate quarterly growth for five consecutive quarters in 2014 and 2015 and incorrectly recognized revenue from a mail order pharmacy business, Philidor Rx Services, the agency said in a fee document.
Bausch also failed to disclose the effects of certain revenues from drug wholesalers after a 500% price increase of a drug called Glumetz a that it acquired in 201
The company, which did not acknowledge or deny the regulator's findings, said in a statement that it was cooperating with the SEC and the resolution marked an "important step in the ongoing transformation of Bausch Health."
Former CEO Michael Pearson and former CFO Howard Schiller agreed to pay penalties of $ 250,000 and $ 100,000, respectively, and to replace the company with $ 450,000 and $ 110,000, representing part of their SEC incentives, the SEC said.
Former controller Tanya Carro agreed to pay $ 75,000 and will be suspended from reporting or auditing public companies. Carro can apply for reinstatement after one year, the SEC said.
The leaders also did not acknowledge or deny the SEC's results. A lawyer for Pearson declined to comment. Schiller and Carro's advisers did not immediately respond to a request for comment.
Another former Valeant CEO and former head of Philidor 2018 was sentenced to one year in prison after being convicted of fraud related to a secret kickback scheme unrelated to SEC charges.