Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has recently been the target of several scandals, relating to the correct financial disclosures and pricing practices, in its FY2014 and FY2015 results. The board of the company has been monitoring the situation and is expected to restate the company’s earnings soon.

The Ad Hoc Committee, which has been reviewing the accounting matters, has already announced that a total of $58 million in net revenues, recognized in FY2014, should have actually been recorded in FY2015. As a result, the EPS for FY2014 is to be reduced by $0.10, while the EPS for FY2015 would be increased by $0.09. Consequently, the FY2015 results would be delayed, while the company has decided to disclose the unaudited results of the 4Q2015 as scheduled.

The interim CEO of the company, Howard Schiller, stated that the decision to delay filing the 10-K is a difficult one to take, but is very necessary. He also reaffirmed that the company is still committed to being transparent in its disclosure to the investors. The CEO also stated although the company has a number of proven brands in the market and a great team to market them, but now the management needs to focus on rebuilding trust with the investors, while executing its business plans.

The primary culprit in Valeant’s latest mess is Philidor, the company’s private distribution channel. Philidor had been consolidated by the company in 2014, but cut ties with the distributor, after concerns about distribution practices. With the filing of the 10-K put on hold, all eyes are set on the 4Q2015 conference call. The investor turnout during the call would determine how strained are VRX’s relations with its investors. Added to this, it would also determine how much confidence the investors have in the company. Finally, an update from the management on this matter would be expected, which would determine what the company is doing to improve its relations.

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) recorded a loss of 10.68% during the February 22 trading session, after having a trade volume of 31.65 million, to close at $75.91.