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`https://www.forbes.com/sites/nathanvardi/2016/03/21/mike-pearson-is-o...
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`MAR 21, 2016 @ 09:46 AM
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`The Little Black Book of Billionaire Secrets
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`Nathan Vardi, FORBES STAFF
`Following the money trail FULL BIO
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`Mike Pearson, the former management consultant who built Valeant Pharmaceuticals, is
`on his way out as CEO amid more drama at the embattled drug company, Valeant
`announced on Monday.
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`Valeant said it had initiated a search for a new chief executive officer and that Pearson, a
`former billionaire, will continue in the role until a replacement is found. In making the
`announcement, Valeant said that it had asked for the resignation of board member
`Howard Schiller, Valeant’s former chief financial officer, but that Schiller had refused to
`give up his board seat.
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`Valeant said that the company's board, which has set up a committee to investigate the
`company’s dealings with a shuttered affiliated pharmacy, and its audit & risk committee
`revealed “improper conduct” of the company’s former chief financial officer that had
`resulted in the “provision of incorrect information to the committee and the company's
`auditors,” contributing to the misstatement of financial results. Valeant also said that it
`had “determined that the tone at the top of the organization and the performance-based
`environment at the company, where challenging targets were set and achieving those
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`ACRUX DDS PTY LTD. et al.
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`EXHIBIT 1557
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`IPR Petition for
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`U.S. Patent No. 7,214,506
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`Mike Pearson Is On His Way Out Of Valeant, Former CFO Refuses To L...
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`https://www.forbes.com/sites/nathanvardi/2016/03/21/mike-pearson-is-o...
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`targets was a key performance expectation, may have been contributing factors resulting
`in the company's improper revenue recognition.”
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`Valeant said the financial misstatements that had been identified would reduce previously
`reported fiscal year 2014 revenue by $58 million, net income attributable to Valeant by
`$33 million, and basic and diluted earnings per share by 9 cents. A substantial part of the
`earnings impact would reverse in the first quarter of 2015, the company said. Valeant said
`its financial statement for 2014 and the first quarter of 2015 should no longer be relied
`upon and will be restated.
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`Amid the new developments, Valeant announced that hedge fund billionaire Bill Ackman
`would be joining the board of directors of Valeant. Ackman’s Pershing Square Capital
`Management hedge fund is Valeant’s second-biggest shareholder with a 9% stake in the
`company. Pershing Square already has a board seat at Valeant, belonging to the hedge
`fund’s vice chairman, which it obtained recently. Pershing Square will now have two board
`seats at the company.
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`Michael "Mike" Pearson, chief executive officer of Valeant Pharmaceuticals International Inc., Kevin Van Paassen/Bloomberg
`[-]
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`Valeant’s announcement on Monday is yet another dramatic turning point at the company
`that has seen its stock price drop by some 90% since its August highs. Ackman has long
`been a public admirer of Pearson and lavished praise on the CEO as Ackman teamed up
`with Pearson on a takeover effort and later became a major shareholder in Valeant.
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