Bausch Health, Execs Sued for Damages Over Spinoff Stock Drop

Bausch Health Cos. executives misled investors about the spinoff of Bausch + Lomb Corp., a shareholder said in a new lawsuit.

The spinoff wasn’t intended to unlock value for shareholders or reduce debt, as executives had told investors when the company announced its plan to separate its eye-care business in August 2020, plaintiff John Kelk said in the complaint. The spinoff was instead Bausch’s strategy to avoid paying investors who had sued the company for securities fraud, the complaint says.

Kelk and his proposed class seek to recover damages from the company and executives for violations of the Exchange ...