Commission stated that: "The Securities and Exchange Commission today charged Canadian pharmaceutical company Biovail Corporation and its former CEO, former CFO, and two current senior executives with engaging in a number of fraudulent accounting schemes and making a series of misstatements to analysts and investors."

On March 24, 2008 the SEC submitted a complaint against Biovail Corporation. The Commission stated: "This case involves chronic fraudulent conduct - including financial reporting fraud and other intentional public misrepresentations - by Biovail Corporation, a Canadian pharmaceutical company whose common stock is traded on the New York and Toronto stock exchanges. Obsessed with meeting quarterly and annual earnings guidance, Biovail's executives repeatedly overstated earnings and hid losses in order to deceive investors and create the appearance of achieving that goal. And, when it ultimately became impossible to continue to conceal the Company's poor performance, Biovail actively misled investors and analysts as to its cause."

On May 1, 2008, the Court issued a final judgment against defendant Biovail Corporation stating: "Defendant Biovail having entered a general appearance; consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jursidiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."

On February 4, 2009, the SEC "announced that the United States District Court has entered a stipulated judgment against Eugene Melnyk, Biovail Corporation's former chairman and chief executive officer, with respect to violations of the stock accumulation disclosure provisions of the federal securities laws alleged by the Commission in a civil enforcement action filed in March 2008. The Commission's securities fraud charges against Melnyk in that action remain pending."

On February 17, 2009 the SEC announced the District Court for the Southern District of New York had denied motions to dismiss filed by former officials of Biovail Corporation. The Commission stated: "Biovail previously resolved these claims against it by consenting to a judgment that, among other things, permanently enjoined it from violating the antifraud and other provisions of the federal securities laws, imposed a $10 million civil penalty, and ordered it to pay disgorgement of $1."