Hedge fund SAC Capital analyst of Gradient Analytics, and Banc of America face charges of share price manipulation of Biovail, a Canadian pharmaceutical company. Gradient and BofA produced negative reports about Biovail’s earnings quality. At the same time, SAC built a large short position in the stock. The defendants need to consider specific and general strategic responses to these allegations.

Hedge fund SAC Capital analyst of Gradient Analytics, and Banc of America face charges of share price manipulation of Biovail, a Canadian pharmaceutical company. Gradient and BofA produced negative reports about Biovail’s earnings quality. At the same time, SAC built a large short position in the stock. The defendants need to consider specific and general strategic responses to these allegations.
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from
Malcolm P. Baker,
Christopher J. Lombardi,
Aldo Sesia
Source: Harvard Business School
14 pages.
Release date: 07 November, 2006. Prod #: 207071-PDF-ENG
Short sale Biovail HBR case solution