TORONTO - Biovail Corp. (TSX:BVF) will pay C$6.5 million to settle with the Ontario Securities Commission, which had accused the pharmaceutical company of various accounting infractions in recent years.
The settlement is the equivalent of US$5.4 million and includes US$1.3 million of costs incurred by the OSC during its enforcement action.
It's the latest example of the Mississauga, Ont.-based company's efforts to deal with a number of regulatory, civil and other legal charges brought against it.
"This settlement agreement represents the sixth legacy litigation action we've resolved since December 2007," said Biovail's chief executive officer Bill Wells.
"With these issues behind us, we are better positioned to execute on our new strategic focus."
Wells, a Biovail director since 2005, was named chief executive in April, succeeding Doug Squires, who is now chairman of Biovail's board of directors.
The OSC's allegations and much of the other litigation against Biovail involves events from 2001 to 2003.
Last March, Biovail agreed to pay US$10 million to settle with the U.S. Securities and Exchange Commission and in May its U.S. subsidiary agreed to pay US$24.6 million to settle U.S. criminal allegations related to the launch of a blood-pressure drug in 2003.
Just before Christmas, Biovail announced the resolution of all litigation with Jerry Treppel, formerly an analyst with Banc of America Securities who had issued a sell recommendation against Biovail stock in April 2002 and was fired a month later.
In 2007, Biovail reached a settlement with another former Banc of America Securities analyst, David Maris, who had written a scathing report on the company's accounting practices in 2003.
Biovail shares traded Friday at $13.16, up 17 cents, at the Toronto Stock Exchange.
