Banc of America ends Biovail coverage, suit looms
Banc of America ends Biovail coverage, suit looms
Banc of America Securities ended its coverage of Canadian drug company Biovail Corp. (BVF.TO: Quote, Profile, Research) (BVF.N: Quote, Profile, Research) on Friday after the securities firm was named, with several other parties, in a class-action lawsuit brought by a group of Biovail shareholders.
“We decided to terminate coverage because of the lawsuit, which now names Banc of America Securities,” Shirley Norton, Banc of America spokeswoman, told Reuters in an interview from San Francisco. “We think it is prudent to terminate our coverage so that we can concentrate on the litigation and defending the organization.
“Because we are involved in the litigation, it would be very difficult for us to continue coverage.”
Banc of America Securities is involved in a $4 billion class action lawsuit, which was filed a week ago in the U.S. District court in New Jersey claiming a stock market manipulation scheme had harmed investors in Biovail, which is Canada’s largest publicly trade drugmaker.
David Maris, the primary analyst responsible for preparing the Banc of America Securities coverage, is also among 22 defendants named in a civil action filed last month in New Jersey by Biovail in connection with Maris’ research coverage of the company.
Banc of America Securities said it believed the allegations against it and Maris were without merit.
More: today.reuters.com