Valeant Pharmaceuticals began its search for a new CEO to replace Michael Pearson
, after blaming the company’s financial issues on Howard Schiller
, former chief financial officer. According to The Wall Street Journal,
“the company admitted the ‘tone at the top of the organization’ may have been a factor in its ‘improper revenue recognition.’” In addition the company is under investigation from the U.S. Securities and Exchange Commission. In response, Valeant set up a page on its website to respond to rumors.
Judy Phair, APR, Fellow PRSA
, shared her thoughts about how Valeant Pharmaceuticals handled the crisis in The Wall Street Journal
’s “Crisis of the Week” column. She stated:
“When the headlines about a once highly profitable pharmaceutical company are dominated by past and present executives and board members trading accusations in the midst of sliding stocks and profits, communication has clearly failed on several fronts. The elements of Valeant’s current crisis run deep and poor communication is a thread throughout.Valeant officials admitted the ‘tone at the top of the organization’ may have led to such abuses as ‘improper revenue recognition.’ When Valeant apparently realized several months ago it had issued inaccurate financial reports, it could have gotten in front of the story by acknowledging its mistakes and correcting bad information. Instead, as it came under pressure from Congress and investigation by the SEC, it released the negative news piecemeal.”
Read more of Phair’s comments via the full article
in The Wall Street Journal
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