Bausch Health Companies Inc. (NYSE: BHC) Securities Fraud Class Action

Bausch investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than September 25, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Bausch Health Companies Inc. (“Bausch”) (NYSE: BHC) securities between August 6, 2020 and May 3, 2023, both dates inclusive (the “Class Period”). 

Case Background:
Bausch, the successor entity of Valeant Pharmaceuticals International, Inc., is a pharmaceutical company known for its majority ownership of Bausch + Lomb Corporation (B+L).  B+L operates a successful eye health business consisting of Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals products.

In 2016, Bausch was forced to replace its senior management and attempt to rebuild its reputation after it was revealed that it had engaged in one of the most egregious cases of securities fraud in U.S. history.  Among other things, Bausch was forced to restate its financial statements, enter into a settlement with the SEC, and settle a class action with investors for a payment of more than $1.1 billion. The class action lawsuit, however, did not resolve all of Bausch’s investors’ claims as a number of  “Opt-Out Plaintiffs”, consisting of numerous institutional and professional investors, proceeded with their claims after the settlement.  Upon information and belief, the potential damages at issue from the Opt-Out Plaintiffs equals approximately $4.2 billion.

The Class Period begins on August 6, 2020, when Bausch announced a plan to spinoff B+L as a separate company in order to reduce Bausch’s debt. When the spinoff was announced, Bausch knew they faced substantial risk from the Opt-Out Plaintiffs. Bausch also knew that spinning-off B+L would leave Bausch with significant debt and the loss of the cashflow B+L had historically generated.

On May 5, 2022, B+L effected the spinoff and began trading as an independent company under the ticker “BLCO” on the NYSE.  Throughout the Class Period, Defendants repeatedly described the B+L spinoff as an attempt to reduce Bausch’s debt and said the spinoff was in the best interest of Bausch shareholders. The spinoff was actually an attempt to shield valuable assets from the Opt-Out Plaintiffs that ultimately operated to the detriment of ordinary Bausch shareholders.

On May 4, 2023, Bausch released its first quarter 2023 financial results, revealing negative earnings, indicating further delay of its B+L spinoff share distribution, which had been originally scheduled for May 2022. Analysts claimed that the probability of a distribution was now less than 50% and unlikely to occur in the near term.  Following this news, Bausch’s stock price fell $1.51, or 25.3%, to close at $5.89 per share on May 4, 2023.

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the B+L spinoff would not result in two strong separate companies; (2) without B+L, Bausch was left overly leveraged and without the cashflow generated by B+L; (3) distribution of the B+L spinoff shares would not occur as represented; (4) the above statements omitted and/or concealed the potential damages Bausch faced from the Opt-Out Plaintiffs; (5) the spinoff was not intended to benefit Bausch shareholders but instead designed to subvert the Opt-Out Plaintiffs’ lawsuit against the company; and (6) as a result, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.