Feds charge former Valeant executives with fraud

NEW YORK - Federal prosecutors are filing charges against former executives of Valeant Pharmaceuticals (VRX) and a mail-order pharmacy it helped to establish as the backlash against skyrocketing drug prices grows.

The U.S. Attorney’s office in Manhattan on Thursday released a complaint against ex-Valeant executive Gary Tanner and Andrew Davenport, who ran the now-defunct Philidor, outlining charges of wire fraud and conspiracy in an alleged scheme to bilk Valeant out of tens of millions of dollars.

Valeant, a Canadian drugmaker, has been under scrutiny for aggressively jacking up prices of old drugs with little competition and for questionable accounting practices involving Philidor.  Earlier this year, the company ousted its CEO.

The company is the target of more than 10 different government probes, plus multiple shareholder lawsuits.

Valeant shares, which in 2015 hit an all-time high of nearly $264, traded Thursday at $17.69, down 1.6 percent on the day.