Hedge fund billionaire Bill Ackman will testify before the Senate Ageing Committee on Wednesday.
He’s been called to speak about one of his major investments, Valeant Pharmaceuticals, and Senator Elizabeth Warren will be there to ask him questions, according to Charley Grant at the Wall Street Journal.
Joining Ackman will be Valeant CEO Michael Pearson and former interim CEO Howard Schiller. The Senate has been investigating Valeant for its pricing practices since December. The House is investigating the company for the same matter.
All of this scrutiny, combined with combinations of malfeasance from a short seller, combined to drag Valeant’s stock down almost 70% since October. It has been a major loser for Ackman’s hedge fund, Pershing Square. Instead of letting it go, though, he’s doubled down on the company and joined the board himself last month.
Senator Warren has made a political career of pointing out the excesses of Wall Street, especially investment banks. A spokesperson confirmed to the WSJ that she will be in attendance.
The Massachusetts senator and her peers will have the opportunity to ask Ackman, Pearson and Schiller why — even after the company vowed to lower drug prices in December — analysts say prices are still increasing for key Valeant drugs.
We bet she’s looking forward to it.