Here are six things to know.
1. A federal jury in New York City convicted the two men on charges of wire fraud and conspiracy to commit money laundering.
2. Prosecutors claim Mr. Tanner, who was responsible for managing Valeant’s relationship with the mail-order pharmacy, funneled business to Philidor to increase sales and “evade insurers’ efforts to substitute cheaper generic versions for expensive Valeant medications,” according to NYT.
3. Mr. Davenport also allegedly paid Mr. Tanner about $10 million and took $40 million for himself when Valeant exercised an option to purchase Philidor.
4. The two executives kept the arrangement under wraps by using shell companies and emailing each other with fake names, prosecutors said.
5. Lawyers for Mr. Tanner and Mr. Davenport denied any wrongdoing during the three-week trial. While Mr. Davenport’s lawyers did not immediately respond to NYT‘s request for comment, Mr. Tanner’s lawyers said they were disappointed by the verdict and planned to appeal.
6. Mr. Tanner and Mr. Davenport’s sentencing is set for Sept. 19. They each face up to 65 years in prison, a U.S. Department of Justice spokesperson told NYT.
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