One legendary investor is happy he sold out of Valeant Pharmaceuticals well ahead of its Tuesday earnings report.
Valeant slashed its full-year guidance and said it faces a debt default risk, causing the company's shares to plummet more than 40 percent Tuesday.
"We've all seen this movie before," the billionaire investor said.
"The company grew as a result of a roll-up strategy. They took a high-priced stock, bought a lot of businesses," Cooperman said, "The market now is struggling to figure out what the internal level of recurring earnings is. This company's faux pas here in misstatements or restatements are not generating any confidence."
That lack of confidence is likely to extend to the company's perception in the political arena, where it has been lambasted on the topic of drug pricing. Valeant has said it is correcting "misperceptions about our company."