by David Kranzler
Investment Research Dynamics
Valeant stock bounced today on the news that it had completed an internal review of its accounting issues with respect to revenue recognition and did not find any additional problems (Wall St Journal). Famous last words there…VRX announced that it intends to file its restated financials in its 10-K by the April 29 “drop dead” date to avoid triggering a default under its bank covenants.
This Company smells more like an “Enron-esque” situation every day. The revenue recognition issues connected to Philidor RX Services is just one of many issues. VRX is a literal “roach motel” of bad business decisions, unethical business practices and, most likely, embedded fraud.