Bausch Health, once known as Valeant Pharmaceuticals, will pay more than $1 billion to settle litigation over a stock plunge that investors suffered after it became the poster child of drug company price gouging several years ago.
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The Canadian company said Monday that a settlement in the securities class action will resolve all claims against it. The settlement must still be approved by a judge.
Valeant shares soared past $250 to hit all-time highs in 2015 as the drugmaker went on an acquisition spree while hiking prices on critical heart drugs and other medicines.
At the same time that Valeant was racking up huge debts from its acquisitions, it came under a harsh spotlight for its pricing policies and its executives became the focus of hostile congressional hearings.
The CEO who led the buying spree was ousted in 2016 as the value of the company evaporated.
Valeant last year decided to adopt the name of one of its acquisitions, the eye care products maker Bausch and Lomb.
Bausch Health Companies Inc. said Monday that it admits no wrongdoing as part of the settlement. It plans to use cash, credit and possibly the capital markets to pay the settlement, which totals $1.21 billion.
Company shares fell 58 cents to $30.42 in premarket trading.