Breach of Contract Suit by Former Valeant CEO
In another recent case of interest to Orlando breach of contract attorneys, Michael Pearson, the former CEO of Valeant Pharmaceuticals, has sued the company for breach of contract. Pearson’s lawsuit alleges that Valeant breached the parties’ separation agreement in which Valeant was supposed to hand over 580,676 restricted shares and 2.4 million performance shares, and that he is owed $180,000 in consulting fees. You can read more about the Valeant breach of contract case here.
Valeant was embroiled in extensive controversy during the last couple of years, which were also the end of Pearson’s tenure. The company’s stock value dropped like a rock, by almost 90%, the company incurred huge losses of $2.4 billion and also was subject to investigation into the exorbitant prices it was charging for some of its drugs. Pearson was paid about $12 million last year, and received other perks in the separation agreement.
The company has said it simply can’t afford to pay Pearson additional millions after he essentially drove the company into the ground, forcing extensive internal cut-backs and layoffs. Pearson insists that a deal is a deal and Valeant should pay up as it agreed.
This is an interesting case. The parties have a written agreement that apparently is clear and understandable, but the company is resisting payment on the grounds of difficulty in complying, which is usually a legally insufficient defense in a breach of contract lawsuit. The company may want to alter its approach to focus on the wreckage left behind by Pearson and how that makes it impossible to comply with the contract, or perhaps that Pearson did not fully disclose the issues that arose during his tenure, which affect the company and its ability or obligation to pay.
Contact an Orlando breach of contract lawyer at the Spence Law Firm for a FREE consultation if you should have any questions about your breach of contract issue.