WASHINGTON (Reuters) - Salix Pharmaceuticals, a unit of Bausch Health Companies Inc (BHC.TO), has moved to settle charges brought by the U.S. Securities and Exchange Commission that it misled investors about the company’s prospects, the SEC said on Friday.
As part of the proposed settlement, which must be approved by a U.S. district court, Salix agreed to an SEC order to avoid future violations of antifraud and corporate reporting provisions of federal securities laws, the agency said.
A former chief financial officer at Salix, Adam Derbyshire, was also charged and agreed to a settlement in which he will pay more than $1 million, the SEC said. A lawyer for Derbyshire said he had no comment on the settlement.
The alleged misconduct occurred before Salix was acquired by Valeant Pharmaceuticals International, which is now known as Bausch Health, according to the agency.
In a statement, Salix said it was pleased to reach the settlement, and has “completely transformed” since its acquisition by Bausch in 2015.
Reporting by Tim Ahmann and Pete Schroeder in Washington; Editing by Bill Berkrot and Matthew Lewis