$80 billion racketeering suit another problem for Valeant

In another blow to embattled drugmaker Valeant Pharmaceuticals International (TSX: VRX), a major mutual fund launched a legal bid Wednesday to recoup $80 billion in losses it says it incurred through misinformation provided by the Canadian drugmaker.

To make matters worse, the suit, which was filed in a federal court in New Jersey, alleges the state’s racketeer influenced and corrupt organizations (RICO) law was infringed, meaning Lord Abbett could demand a penalty thrice as large as actually sustained losses, Bloomberg has reported.

Valeant, which has its US headquarters in New Jersey, is already facing legal action over alleged drug price manipulation, and had $162 million set aside at the end of the last quarter for “probable and estimable” legal bills.