ABC News – Biovail Corp., Canada’s largest drug maker, filed a lawsuit Wednesday in New Jersey seeking $4.6 billion in damages from 22 defendants, mostly hedge funds and investment researchers.
The complaint alleges that Biovail was the target of a “massive and fraudulent disinformation campaign” that involved biased analyst reports from purportedly independent sources hired to do “hatchet jobs” to drive down Biovail’s stock.
The suit was filed in New Jersey Superior Court.
Biovail’s stock has been subject to dramatic ups and downs over the years, often coinciding with announcements by the company about its financial performance, regulatory investigations into the company and operational developments.
Biovail shares rose 47 cents to close at $25.57 Wednesday on the New York Stock Exchange. The stock has traded between $13.74 and $57.18 over the past five years.
