Biovail Founder Strikes Deal In SEC Fraud Suit

Law360, New York (February 18, 2011, 2:05 PM EST) -- Biovail Corp.'s founder and former CEO has settled a fraud suit accusing the Canada-based pharmaceutical company and its former principals of overstating earnings and hiding losses from 2001 to 2003.

Eugene N. Melnyk agreed to a $150,000 civil penalty without admitting or denying the allegations filed against him by the U.S. Securities and Exchange Commission, according to Thursday's final judgment in the U.S. District Court for the Southern District of New York.

The payment will be funneled into a fund that may be distributed at a...
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