Valeant calls for SEC investigation into short-seller's actions

Mon Oct 26, 2015 8:34am EDT
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Oct 26 (Reuters) - The chief executive of Valeant Pharmaceuticals International Inc said on Monday that a short-seller's allegation that the company inflated its revenue was "completely untrue," and Valeant has asked the U.S. Securities and Exchange Commission (SEC) to investigate.

Valeant fired back in a conference call with investors and analysts after the report by Citron Research, run by Andrew Left, hammered Valeant's stock last week.

"His motivation is the same as one who runs into a crowded theater and falsely yells fire. He wanted people to run," said Chief Executive Mike Pearson. "He intentionally designed the report to frighten our shareholders to drive down the price of our stock so he could make money for his short-selling."

Valeant's lead director Robert Ingram said the company's board has "complete and total faith" in Pearson.

Citron's Andrew Left did not immediately respond to a request for comment. (Reporting by Caroline Humer in New York, Euan Rocha in Toronto and Rod Nickel in Winnipeg, Manitoba; Editing by Nick Zieminski)