Valeant Pharmaceuticals (VRX) Stock: Here's Why It's Climbing Today

Michael Pearson is on his way out-and this time, it's for good. "It's been a privilege to lead Valeant for the past eight years", said J. Michael Pearson, chief executive officer. Bill Ackman is the CEO of Pershing Square Capital Management, L.P., a well known hedge fund, which owns a 9% stake in VRX. The company has asked Schiller, still a Valeant director, to resign, but so far he hasn't.

The company, which makes a wide variety of generic drugs and other medical supplies, has fallen on tough times ever since short seller Andrew Left called the company's finances a "fraud" due to the way they book revenue. Stock is trading in the real-time trading session with the total volume of 37.91 million shares, as compared to its average volume of 20.16 million shares. He will remain CEO until then, the company said.

Valeant, which has not filed audited fourth-quarter 2015 earnings, also said it is restating first-quarter 2015 results and pledged to file its annual report on or before April 29.

In the last six months, Valeant has been accused of price-gouging by Democratic presidential hopefuls Hillary ClintonHillary Rodham ClintonEmbattled Valeant CEO to step down Clinton attacks Trump with pledges to back Israel Sanders's tax plan ranks highest with public MORE and Sen. Since last August, Valeant's stock has crashed from $263 down to a measly $26, a massive 88% drop.

In response, Valeant formed an ad hoc committee to review the allegations regarding specialty pharmacy Philidor RX Services.

However, the company has acknowledged that its drug pricing and distribution policies are under investigation by federal prosecutors in NY and MA, the Securities and Exchange Commission and two congressional committees. "While I regret the controversies that have adversely impacted our business over the past several months, I know that Valeant is a strong and resilient company, and I am committed to doing everything I can to ensure a smooth transition to new leadership", he said.

Valeant initially requested Schiller to step down from the board, but Schiller "has not done so", according to the company's statement. "Management, in consultation with the Committee, has concluded that one or more material weaknesses exist in the Company's internal control over financial reporting", the document said.

As the maximum size of Valeant's board now is fixed at 14 directors, Katharine B. Stevenson voluntarily resigned from the Board to create a vacancy to permit Mr. Ackman's appointment.

Robert Ingram, Chairman of the Board said, "We look forward to Bill Ackman's perspective and contributions as a new member of our board and one of Valeant's largest shareholders".

In its press release this morning, Valeant specifically pointed to Schiller's activities while at the company as "improper" which included "the company's improper revenue recognition".

Last week, Ackman sent an email to investors promising to take a more proactive role at Valeant. We continue to believe that the values of the underlying business franchises that comprise Valeant are worth multiples of the current market price.

A spokesman for Pershing Square did not provide comments to CNBC regarding the Valeant news.