Milberg LLP Announces Investigation of Sequoia Fund

NEW YORK, Nov. 7, 2017 /PRNewswire/ -- Milberg LLP, an investor and consumer protection firm, is investigating whether the Sequoia Fund (Nasdaq: SEQUX) damaged its shareholders in violation of law by breaching obligations to them with respect to the size of its investments in Valeant Pharmaceuticals International Inc. ("Valeant").

Pursuant to Sequoia Fund's concentration policy, which is stated in its offering prospectus, Sequoia Fund was not allowed to invest more than 25% of Sequoia's assets in one industry.  In 2010, however, Sequoia Fund invested in Valeant to the tune of 9.2% of the fund's assets. By August 5, 2015, Valeant accounted for 32% of its net assets and 35% of the fund's stock holdings. 

In 2015, Valeant was engulfed in a scandal stemming from its practice of acquiring drugs and raising prices dramatically, drawing significant political and public scorn.  Accusations soon followed by investigative journalists, investments analysts, and short sellers, of questionable accounting and business practices, which caused Valeant's stock price to plummet. By April 2016, Valeant had lost 90% of its value, which translated to a loss of $2.5 billion for Sequoia shareholders, and was attributable at least in part to Sequoia's violation of its concentration policy.

The most affected shareholders would have acquired their shares in Sequoia on or before February 2015, and held through March 2016.

We are investigating whether Sequoia's conduct violated applicable laws and obligations.  If you have any information you think may be useful to our investigation or have any questions, please contact the following attorney:

Andrei Rado, Esq.
Milberg LLP
One Pennsylvania Plaza, 50th Fl.
New York, NY 10119
Phone number: 800-320-5081
Email: [email protected]

Milberg has represented individual and institutional investors in important cases for over four decades, and serves as lead counsel in numerous courts throughout the United States. 

Attorney Advertising. Prior results do not guarantee a similar outcome.

SOURCE Milberg LLP

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