Bausch & Lomb might have breached its fiduciary duties to current and former employees while touting company stock as a good retirement plan investment knowing the company had serious financial irregularities and that one key product psoed undisclosed but known health risks.
Investigation and pending class action lawsuit against Bausch & Lomb on behalf of all participants of the Bausch & Lomb 401(k) Plan for whose individual accounts the Plan held an interest in the Bausch & Lomb Incorporated Stock Fund between January 27, 2005 and May 15, 2006.
During the Class Period, Bausch & Lomb failed to take action to protect the Plan from investing in the Fund when the price of the Fund shares was artificially inflated due to:
(a) misrepresentations and omissions regarding the Bausch & Lomb's financial statements and condition; and
(b) misrepresentations and omissions regarding the health and financial risks associated with the marketing and sale of the Company's "ReNu with MoistureLoc" Multi-Purpose Solution ("ReNu" or "ReNu with MoistureLoc") product.
This class action lawsuit arises out of financial irregularities during the Class Period. Bausch & Lomb and its senior executives reported false information about Bausch & Lomb's financial results, and failed to disclose material adverse information about the true nature of the Company's revenues, the lack of adequate internal controls and the underpayment of taxes which caused millions of dollars in penalties and ultimately resulted in the restatement of the Company's financials over a period of five years.
With respect to ReNu, Bausch & Lomb failed to disclose serious health problems caused by the use of the product, including the potential for eye infections and blindness. Despite having been put on notice of these health problems, Bausch & Lomb remained silent and continued to tout ReNu. Ultimately, given the seriousness of the health problems created by ReNu, Bausch & Lomb halted all sales of ReNu. Collectively, these improprieties caused Bausch & Lomb to suspend all global sales of ReNu and restate its financial results from at least 2000 through the first half of 2005.
These improper activities artificially inflated the value of the Bausch & Lomb Incorporated Stock Fund and Bausch & Lomb common stock. Yet, throughout the Class Period, while the Plan continued to invest in the Fund and the Fund continued to invest in Bausch & Lomb stock, the Company's top officers and directors sold their holdings of artificially inflated Company stock for millions of dollars.
Name (Stock Symbol)
Bausch & Lomb (BOL)
Bausch & Lomb designs and manufactures eye care products and medical devices for eye diseases.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.