Valeant Pharmaceuticals International Inc is under investigation by both state and federal agencies, including the Securities and Exchange Commission, over the mishandling of financial results. Reuters reported the company singled out former chief financial officer Howard Schiller and former corporate controller Tanya Carro as the culprits of the drugmaker’s accounting errors and replaced the chief executive with a billionaire investor.
Many professionals believe this management move is an attempt to calm the waters with the SEC.
Joseph Carcello, an accounting professor at UT, was quoted saying, “[The SEC is likely to] ramp up their inquiry if for no other reason than the company itself has admitted to improper accounting.”