Valeant shares fall on reports of U.S. criminal probe

Shares in Valeant pharmaceutical company shed more than 12 per cent Monday after a report from Bloomberg that U.S. prosecutors are focusing on the company's former CEO and CFO to build a fraud casethat could lead to charges.

Citing unnamed sources, the financial news agency says police agencies are probing former CEO J. Michael Pearson, and Howard Schiller, the ex-chief financial officer who became interim CEO during a medical leave by Pearson.

Valeant sent out a statement, saying that they are in contact and co-operating with U.S. authorities.

"We do not comment on rumours about investigations, and cannot comment on or speculate about the possible course of any ongoing investigation. Valeant takes these matters seriously and intends to uphold the highest standards of ethical conduct."

Valeant shares fell $3.27 on the Toronto Stock Exchange to close at $23.94.

The company was briefly the most valuable enterprise in Canada last year before an accounting scandal wiped out 90 per cent of the company's valueon allegations of improper accounting.