Goldman: We were wrong on Valeant

Getty Images

Wall Street rarely talks about mistakes, but Goldman admitted they messed up the Valeant stock call in a note to clients Monday.

Valeant shares are down more than 60 percent from early August highs and have lost about half their value in the past month on questions concerning its drug-pricing business model and allegations of illegal business practices at specialty pharmaceutical distributors.

Goldman downgraded Valeant from "buy" to "neutral" and removed the company from the "Americas Buy List."

While Goldman gave up on Valeant, the short seller that sparked the sell-off, Andrew Left of Citron Research, said on Monday he will be moving on from covering Valeant in the future.

"We are passing all new information on to the mainstream media investigative reports, whose legal teams are far deeper than those at Citron," Left wrote in the report.

Here are the reasons why Goldman finally threw in the towel...