04/04/2008 05:12 am ET | Updated May 25, 2011

Where "60 Minutes" Missed The Mark On Big-Pharma Lawsuit Story

The Securities and Exchange Commission sued a Canadian drug maker this week--and in the process blew apart the premise of a two-year-old 60 Minutes investigative piece on short sellers.

The March 2006 segment by Lesley Stahl sought to warn viewers about hedge funds that use bad information to drive down stock prices to benefit themselves at small investors' expense.

To make its point, 60 Minutes focused on a lawsuit brought by Biovail Corp., of Toronto, which accused the big hedge-fund SAC Capital, of Stamford, Connecticut, and a stock-research firm of conspiring to spread bogus information about the company.

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