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Cummings Statement on Charges Against Valeant and Philidor Executives for Kickback Scheme

Nov 17, 2016
Press Release

Cummings Statement on Charges Against Valeant and Philidor Executives for Kickback Scheme

 

Criminal Probe Follows Cummings’ Investigation into Valeant’s Relationship with Philidor

 

Washington, D.C. (Nov. 17, 2016)—Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement in response to the announcement by the United States Attorney for the Southern District of New York that criminal charges have been filed against former Valeant Executive Gary Tanner and former Philidor CEO Andrew Davenport:

“I commend the U.S. Attorney’s office for aggressively pursuing an investigation to hold these executives accountable for their corrupt business practices.  I have repeatedly requested interviews with Mr. Tanner and several other Valeant employees to determine how deep their involvement was with Philidor, but Valeant refused to cooperate with Congress and prevented information about their relationship from coming to light sooner.”

Cummings has been investigating Valeant’s relationship with  Philidor Rx Services since November 2015 and has repeatedly sought interviews with Tanner and other Valeant employees.

Cummings sent his first letter to former Valeant CEO Michael Pearson in November 2015 requesting transcribed interviews with several current and former Valeant employees—including Tanner.  Tanner and other Valeant employees reportedly helped manage Philidor’s business operations, despite Valeant’s claims that Philidor “operates independently” from Valeant.  

Cummings sent a second letter to Pearson in December 2015 reiterating his requests for interviews and documents and questioning Valeant’s failure to disclose information about its relationship with Philidor to its shareholders.

Cummings sent a third letter to Pearson in April 2016 reiterating his prior requests and asking for documents related to an internal review of the Valeant-Philidor relationship conducted by an ad hoc committee of Valeant’s Board of Directors. 

To date, Valeant has refused to make any Valeant employees available for interviews or provide any documents in response to these requests.

The Oversight Committee held a hearing—at Cummings’ request—on February 4, 2016, with Howard Schiller, who was serving as Valeant’s interim CEO at the time.

Cummings released a memo ahead of the hearing summarizing efforts by Valeant executives who are “lining their pockets at the expense of some of the most vulnerable families in our nation.”

Click here to read the complaint against Tanner and Davenport.

 

114th Congress