Valeant accused of racketeering in class-action lawsuit from N.Y. health funds
MONTREAL — Valeant Pharmaceuticals is being sued by New York health benefit funds providers that allege the embattled Canadian drug manufacturer overcharged for medications in contravention of racketeering and consumer-protection legislation.
New York Hotel Trades Council & Hotel Association of New York City and the Detectives’ Endowment Association of New York filed a class-action lawsuit Monday against Valeant and former Philidor Rx Services founders Andrew and Matthew Davenport, along with several affiliated companies.
The health benefit funds providers, which reimburse employees and retirees for prescription drugs, allege they “unnecessarily paid for or incurred excessive costs” for Valeant medications.
Valeant (TSX:VRX) faces three counts, including alleged violation of the Racketeer Influenced and Corrupt Organizations Act and the New York Deceptive Practices Act. All defendants have been accused of conspiring to violate RICO through activities such as mail fraud, wire fraud and use of interstate facilities in aid of racketeering.