Speaker 1: Well, now it's time for our daily Bloomberg labrief, exploring
Speaker 1: legal issues in the news, and today Bloomberg Lajos doom
Speaker 1: Grosso and Greg Store discussed the arrest of former Valiant
Speaker 1: Pharmaceuticals executives Gary Tanner and Andrew Davenport. The men ran Philidor,
Speaker 1: a Rex Services, and are charged with fraud and money laundering.
Speaker 1: They speak with the Bloomberg Intelligence analysts Elizabeth Krewta Hollow
Speaker 1: and Bloomberg Biotech reporter Donnie Bloomfield. Elizabeth, prosecutors have been
Speaker 1: investigating this scheme for more than a year and is
Speaker 1: a little complicated. Will you explain what allegedly happened? And
Speaker 1: we know that Tanner, part of Valiant, conspired with Davenport
Speaker 1: to create phil Door and it's also that other Valiant
Speaker 1: emloys were implicated in this process of creating Philidor, so
Speaker 1: that we need to figure out who those others really are.
Speaker 1: That's not entirely clear from these documents that we got.
Speaker 1: So they create Philidor, and then Tanner then works with
Speaker 1: Davenport to push Valiance products through this mail order pharmacy Philidor,
Speaker 1: and they conspired to get Valiant only use Philidor. They
Speaker 1: claimed that there were other rivals that were eventually going
Speaker 1: to compete and convinced Valiant out right by philidor Or.
Speaker 1: It's quite complicated, but the option to buy Philidor for
Speaker 1: zero dollars, which is in essence owning them, and then
Speaker 1: Davenport got forty million dollars and kicked back ten of
Speaker 1: that too. Tanner, We're gonna have to keep saying this,
Speaker 1: but this, of course is all just alleged in the complaint, Uh, Donny,
Speaker 1: As I understand this, the company is sort of being
Speaker 1: made in these charges out to be the victim of
Speaker 1: the alleged conduct by Tanner and Davenport. Is that how
Speaker 1: you understand it? Yeah, I think that's right in these charges,
Speaker 1: but we need to think about this in the broader
Speaker 1: scheme of things. As we know, the investigation is ongoing.
Speaker 1: The former CEO mc pearson and former CFO Howard Schiller
Speaker 1: weren't charged, but charges could still becoming. We don't quite
Speaker 1: know yet. I think the point is that Valiant is
Speaker 1: certainly not clearly to the woods yet, even though they
Speaker 1: were the victim here. I think there are a number
Speaker 1: of unanswered questions, including why was it so easy to
Speaker 1: defray them in this particular way allegedly, and so we're
Speaker 1: just going to have to see what unspools out of
Speaker 1: this investigation which could bring bring the company under under
Speaker 1: question other ways, as Bloomberg Intelligence analyst Elizabeth krew to
Speaker 1: Hollow and Bloomberg Biotech reporter Donnie Bloomfield speaking with Bloomberg
Speaker 1: Stom Grosso and Greg Sture. You can listen to Bloomberg
Speaker 1: Law weekdays at one pm Wall Street Time here on
Speaker 1: Bloomberg Radio.