Valeant's Stock Drops Following False Report Of FBI Raid

Valeant Pharmaceutical's ongoing scandals has yet to be resolved, leaving investors on the edge. Sometimes, all it takes is a false Tweet to send investors into panic mode – and that is what briefly happened on Monday. Unconfirmed reports, mostly limited to Twitter, claimed that Valeant's office in New Jersey was raided by the FBI. Valeant's stock sold off on heavy volume at around 1:38 PM and dropped lower by more than $1 per share.

Valeant's stock has been trading for the most part in positive territory on Monday, hitting an intra-day high of $91.21 after opening at $87.28. Following a brief sell-off after the FBI raid reports, the stock rebounded to near $90 per share. The FBI confirmed with Benzinga that it has not dispatched any agents to Valeant's New Jersey offices on official business. One of the Twitter account linked with the Valeant chatter followed up, confirming the initial report is indeed false . The user added that there are "lots of cop cars" near Valeant's office in Laval, Canada. However, it appears to be limited to local police cars – likely implying that provincial and/or federal regulators are not involved.