Response Statement on QLT Litigation
December 16, 2015
- Yesterday, QLT, Inc. (“QLT”) filed an action in British Columbia against Valeant asserting claims with respect to an earnout relating to a 2012 acquisition, which earnout would have been due upon receipt by Valeant of all registrations required for the commercial sale of a laser. These claims were first asserted by QLT in 2013 based upon the unsupported claim that only one specific approval was required to trigger the earnout. At that time, Valeant flatly rejected the claim because all approvals required to commercially sell the laser had not been obtained.
- In November 2015, after no attempt to pursue its contractual remedies and at a time that Valeant was in the news and experiencing substantial negative publicity, QLT sent a letter threatening to go public with its claims. Valeant immediately responded that it was deeply disappointed that QLT determined that the best way to pursue a frivolous two year old claim against Valeant was to threaten to make a public announcement. Valeant’s letter stated the following, “Given the current press surrounding Valeant, the age and status of our dispute and the fact that the Asset Purchase Agreement expressly precludes you from making public disclosure in the manner you contemplate, this can only be viewed as a bad faith, opportunistic attempt to damage Valeant in breach of your obligations under Section 10.7 of the Asset Purchase Agreement.” Valeant’s position has not changed, and QLT made its press release and filed its action after Valeant rejected QLT’s offer not to go public in exchange for $2 million.
- Valeant does not believe that it owes QLT any amounts. Valeant intends to vigorously defend itself.