- Valeant Pharmaceuticals' management has been ordered to cease trading by the Canadian securities regulator in Quebec per the company's request, Valeant said Thursday. The order applies to CEO Michael Pearson, CFO Robert Rosiello, along with members of the board of directors including Bill Ackman.
- The order was tied to the continued delay in filing Valeant's audited annual financial statements and its 10-K form with the SEC.
- Although operating mostly out of the U.S., Valeant is headquartered in Laval, Quebec. Autorite des marches financiers is the company's primary security regulator in Canada.
In a statement on the cease order, Valeant said the cease trade order only applies to trading for its directors, CEO, and CFO. The order will be in place for 15 days, according to the Wall Street Journal. If Valeant has still not filed its annual report with the SEC, the order will be renewed.
"The company is working diligently and intends to make the required filings on or before April 29, 2016," the company said.
Earlier this week, Valeant asked lenders for an extension on its filing deadlines. An ongoing investigation into the company's accounting practices by an ad hoc committee of the board of directors has delayed submission of annual forms, originally due March 15. If Valeant does not file by April 29, it would trigger a default on its credit facility. An extension would give the company relief if its schedule for filing is again postponed.
The investigation is examining how the company reported revenue tied to its now-severed relationship with the specialty pharmacy Philidor. In February, Valeant disclosed preliminary findings showing approximately $58 million in revenue should not have been recognized in its 2014 year-end earnings report.