Biovail's case for short conspiracy debunked?

May 22, 2008

Recall that in early 2006, Biovail filed a $4.6 billion suit that charged 24 hedge funds and research analysts with engaging in a scheme to push the company's stock with lies and planted stories in the media. The debate was widely covered, and ensnared some really big names, such as SAC Capital. But Fortune notes the company just settled federal charges of kickbacks and conspiracy related to the launch of a new drug that touched on the issue raised by hedge funds. In a press statement, the feds seemed to agree with hedge funds that a program that paid doctors to prescribe the drug was a bit over the top. In short, it lent credence to the arguments from the shorts that the company was engaging in nothing short of bribery.

For more:
- here's the Fortune article