Defendant Name: Biovail Corporation

Defendant Type: Public Company

Document Reference: court_doc17_08-cv-02979

Document Details

Legal Case Name SEC v. Biovail Corporation, Eugene N. Melnyk, Brian Crombie, John Miszuk, and Kenneth G. Howling
Document Name Final Judgement as to Defendant Biovail Corporation
Document Date 01-May-2008
Document Format Civil Proceeding
Case Number 08-cv-02979
Federal District Court New York, Southern District of New York
Allegation Type Issuer Reporting and Disclosure
Document Summary 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 jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."

Disgorgement & Penalty Information

Resolutions
Enjoinment
Monetary Penalties:

Disgorgement

Individual:     $1.00 Shared:    

Civil Penalty

Individual:     $10,000,000.00 Shared:    

Total Penalty

Individual:     $10,000,001.00 Shared:    

Related Documents:

2008-50 24-Mar-2008 Press Release--Civil Action
SEC Charges Biovail Corporation and Senior Executives with Accounting Fraud
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."
comp20506 24-Mar-2008 Complaint
Complaint
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."
LR-20506 24-Mar-2008 Litigation Release
SEC Charges Biovail Corporation and its Former CEO, CFO and Two Current Senior Executives with Securities Fraud; Biovail Settles Charges and Agrees to Pay $10 Million Civil Penalty
On March 24, 2008, the SEC stated that: "[It] 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."
court_doc38_08-cv-02979 01-Aug-2008 Complaint
Amended Complaint
On August 1 2008, the SEC filed an amended complaint against Biovail Corporation, Eugene N. Melnyk, Brian Crombie, John Miszuk, and Kenneth G. Howling. The Commission stated: "This case involves chronic fraudulent conduct - including financial reporting fraud and other intentional misrepresentations - by Biovail Corporation . . . 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"
LR-20880 04-Feb-2009 Litigation Release
SEC Obtains Stipulated Judgment Against Former Biovail CEO on Stock Accumulation Disclosure Charges; Eugene Melnyk Stipulates to a Judgment Imposing a $1 Million Civil Penalty
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."
LR-20903 17-Feb-2009 Litigation Release
District Court Denies Defendants' Motions to Dismiss SEC's Amended Complaint in Biovail Matter
On February 17, 2009, the SEC "announced that the United States District Court for the Southern District of New York has entered an order denying in all respects the motions to dismiss filed by defendants Brian Crombie, Biovail's former chief financial officer; John Miszuk, the company's former controller; and Kenneth G. Howling, its former chief financial officer. In a Memorandum Order, the court stated it "has considered defendants' contentions and concluded they are without merit." Former Biovail chief executive officer Eugene Melnyk is a defendant in the action but did not file a motion to dismiss."