X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Biovail Corporation has taken a page from the George Steinbrenner/Billy Martin playbook in order to reignite its well-publicized conspiracy suit against short-sellers and analysts. The Canadian drugmaker has rehired its former lead firm in the case � Kasowitz, Benson, Torres & Friedman. Biovail fired Kasowitz last March amid legal proceedings surrounding the company’s misuse of court-protected documents. The suit began in February 2006, when Biovail sued analysts and hedge funds, including SAC Capital and its founder Steven Cohen, in New Jersey state court. Biovail claims that it was the victim of a conspiracy to spread false information about it in an effort to depress its stock and profit. The company’s chairman at the time, Eugene Melnyk, appeared on 60 Minutes to tout the complaint. But the company’s suit has been stalled since January, when Manhattan federal district court judge Richard Owen ruled that Biovail violated a protective order in his courtroom where the company is a defendant in a shareholder class action. Specifically, Owen found that Biovail had used court-protected documents it had subpoenaed from Banc of America LLC to support its allegations in the New Jersey case. The dispute was embarrassing and costly for both Biovail and its lawyers. It was amidst the hearings that Biovail fired the Kasowitz firm. On Friday morning, the Kasowitz firm made its first appearance in New Jersey state court on behalf of Biovail since being fired. The company confirmed that it rehired Kasowitz but declined to elaborate on what led to the reconciliation. The news of Kasowitz’s return comes after a development on another front of the litigation. On Monday, Biovail announced a settlement with Banc of America LLC, whose former analyst, David Maris, is a defendant in the company’s suit. Biovail agreed to drop Maris from its suit. The impact of the settlement is in dispute. In a press release, Biovail claimed that the settlement would be “extremely helpful” in its suit, adding that Maris would provide key documents and testimony. But Maris’s lawyers at Morrison & Foerester responded with their own statement, countering that Maris was not cooperating with Biovail and that he did not believe that his testimony would help the company’s cause.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.