The former CEO and CFO of Salix Pharmaceuticals, which was sold to Valeant Pharmaceuticals for more than $11 billion a year ago, are being investigated by the SEC, according to the Reuters news service.
The probe centers on inventory reporting, which led to the resignation of Chief Financial Officer Adam Derbyshire in late 2014 and the retirement of Chief Executive Officer Carolyn Logan in January of 2015.
Reuters cited “a person familiar with the probe” as the source for its report.
The lawyers for the two former executives had no comment.
(See links with this post for WTW coverage of the inventory issues and the sale of the company.)
“It remains to be seen if the ongoing probe will ultimately lead to civil charges against the executives, said the source, who spoke anonymously because the matter is not public,” Reuters said.
In October, Valeant reported that Salix was facing an investigation by the SEC over the inventory and accounting issues.
“It had not been previously reported that the former CEO and CFO of Salix are major subjects of the SEC investigation,” Reuters said..
The sale of the company led to the layoff of 258 Salix workers in Raleigh.
Salix now operates as a subsidiary of Valeant.
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