August 18, 2016 / 3:47 PM / a year ago

T. Rowe Price sues Valeant

Aug 18 (Reuters) - T Rowe Price Group Inc has sued Valeant Pharmaceuticals International Inc , alleging that investors in the Canadian drugmaker lost billions of dollars due to its use of a secret pharmacy network, among others.

T Rowe Price said Valeant was involved in a “fraudulent scheme” using the secret pharmacy network, deceptive pricing and reimbursement practices, and fictitious accounting to shield the company’s branded drugs from generic competition and artificially inflate revenues and profits.

Scrutiny of Valeant’s sharp price increases and of its dealings with pharmacy Philidor RX last year sent the company’s shares plunging.

The complaint was filed in the District Court of New Jersey on Monday and was made public on Thursday.

Valeant was not immediately available for comment.

Reporting by Ankur Banerjee in Bengaluru; Editing by Sriraj Kalluvila

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