Well, now it's time for our daily Bloomberg labrief, exploring legal issues in the news, and today Bloomberg Lajos doom Grosso and Greg Store discussed the arrest of former Valiant Pharmaceuticals executives Gary Tanner and Andrew Davenport. The men ran Philidor, a Rex Services, and are charged with fraud and money laundering. They speak with the Bloomberg Intelligence analysts Elizabeth Krewta Hollow
and Bloomberg Biotech reporter Donnie Bloomfield. Elizabeth, prosecutors have been investigating this scheme for more than a year and is a little complicated. Will you explain what allegedly happened? And we know that Tanner, part of Valiant, conspired with Davenport to create phil Door and it's also that other Valiant emloys were implicated in this process of creating Philidor, so that we need to figure out who those others really are. That's not entirely clear from these documents that we got.
So they create Philidor, and then Tanner then works with Davenport to push Valiance products through this mail order pharmacy Philidor, and they conspired to get Valiant only use Philidor. They claimed that there were other rivals that were eventually going to compete and convinced Valiant out right by philidor Or. It's quite complicated, but the option to buy Philidor for zero dollars, which is in essence owning them, and then Davenport got forty million dollars and kicked back ten of
that too. Tanner, We're gonna have to keep saying this, but this, of course is all just alleged in the complaint, Uh, Donny, As I understand this, the company is sort of being made in these charges out to be the victim of the alleged conduct by Tanner and Davenport. Is that how you understand it? Yeah, I think that's right in these charges, but we need to think about this in the broader scheme of things. As we know, the investigation is ongoing.
The former CEO mc pearson and former CFO Howard Schiller weren't charged, but charges could still becoming. We don't quite know yet. I think the point is that Valiant is certainly not clearly to the woods yet, even though they
were the victim here. I think there are a number of unanswered questions, including why was it so easy to defray them in this particular way allegedly, and so we're just going to have to see what unspools out of this investigation which could bring bring the company under under question other ways, as Bloomberg Intelligence analyst Elizabeth krew to Hollow and Bloomberg Biotech reporter Donnie Bloomfield speaking with Bloomberg
Stom Grosso and Greg Sture. You can listen to Bloomberg Law weekdays at one pm Wall Street Time here on Bloomberg Radio.