Bausch Health, formerly known as Valeant Pharmaceuticals, will pay $1.21 billion to settle a 2015 shareholder class-action lawsuit related to a drop in the drugmaker's shares.
The "Valeant stock drop," references a stock plunge investors suffered several years ago when the drugmaker became the face of pharmaceutical company price-gouging. Valeant's shares hit an all-time high of $250 in 2015 but began dropping after Congress scrutinized its method of buying drugs and then sharply raising its price. Fortune reported that the drugmaker's shares hit a 52-week low of $9.62 on April 5, 2017.
Bausch Health will use a combination of cash, credit and possibly capital markets to pay the settlement, which still needs court approval.
The settlement will not affect the company's 2019 financial forecast, the drugmaker said. Bauch Health denies all allegations of wrongdoing and did not admit to any liability.
More articles on pharmacy:
House passes Pelosi's drug pricing bill, with a few changes
Walmart agrees to continue accepting paper prescriptions
Sienna Biopharmaceuticals to shut down by end of week