Litigation

Gradient Analytics? Early Research Identified Same Issues as Charges in SEC Complaint against Biovail

By Tracy Coenen

SEC Credits Analysts Who Questioned Biovail, But Retaliation Against Independent Researchers Through Lawsuits Continues

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Gradient Analytics said recently its research into Biovail from 2002 to 2003 identified the same issues that are now the centerpiece of the accounting-fraud charges supporting the U.S. Securities and Exchange Commission complaint against the pharmaceutical company. The SEC?s complaint confirms the validity of Gradient?s critical analysis of Biovail but raises serious questions about how companies retaliate against analysts with threats, intimidation, and lawsuits.

The SEC yesterday announced accounting-fraud charges and a $10 million fine that Biovail agreed to pay. In 2006, Biovail sued Gradient, alleging that its critical analysis caused company stock to drop. The SEC investigated both Biovail and Gradient. In February 2007, the SEC terminated its investigation of Gradient and recommended no enforcement action. (more…)

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Full post as published by The FRAUDfiles Blog on April 07, 2008 (boomark / email).