The parent company of Bausch + Lomb, Bausch Health, has agreed to pay $1.2 billion to settle litigation over the plunge in its stock price three years ago.
At the time, the company was known as Valeant Pharmaceuticals. Share prices soared as the company acquired new subsidiaries and raised medication prices.
The drug pricing policies came under congressional scrutiny and stock prices fell.
Bausch Health is admitting no wrongdoing as part of the settlement.
The settlement must still be approved by a judge.