Baush Health (TSC:BHC) – CEO, Joseph C. Papa
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  • Bausch Health Companies Inc (TSX:BHC) reported a net loss of C$1.5 billion in the last quarter of 2019
  • This resulted in a full-year net loss of C$1.7 billion
  • The loss was caused by a C$1.2 billion pay-out the company settled with a class-action lawsuit
  • the class-action was brought against Bausch for allegedly artificially inflating stocks between 2013 and 2015
  • As per the settlement, the company takes no responsibility for the alleged actions
  • Bausch Health Companies Inc (BHC) was down 7.62 per cent, with shares currently trading for $C25.94

Bausch Health Companies Inc (TSX:BHC) is not quite free of its controversial past.

A litigation settlement has cost the company C$1.2 billion dollars and severely hindered their fourth quarter and full-year financials.

Bausch settled a class-action lawsuit for the high-sum, which was brought against the company’s previous moniker Valeant Pharmaceuticals for artificially inflating the price of its stock between 2013 and 2015.

As per the settlement, Bausch takes no responsibility and assumes no fault from the allegations.

Due to the pay-out, the company reported a net loss of C$1.5 billion for last quarter and and full-year net loss of C$1.7 billion.

the alleged inflations occurred in the early 2010’s, when the company was under the leadership of J. Micheal Pearson. During this time, Valeant Pharmaceuticals (now Bausch Health) grew into one of the largest companies in Canada.

However, this rise was short lived after the company was sued a number of times for insider trading, artifically raising shares, and price-hiking life saving medicine.

As a result, the Valeant’s share price fell 90 percent in less than a year. Mr Pearson was replaced as CEO by Joseph Papa in 2016. At the time of the changeover, the company had accrued C$30 billion worth of debt.

Since taking over, the new CEO has overseen the name change, sold off many of the assets purchased by Pearson, reduced the debt.

Despite these efforts Bausch’s share price has remained stagnant since 2016, with little significant movement.

Today’s release contained no specific 2020 outlook figures. It also did not mention the predicted net loss, if any, expected in the coming year.

Bausch Health Companies Inc (BHC) was down 7.62 per cent, with shares currently trading for $C25.94.

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