Tears of Joy at Bausch & Lomb

Crying Jag

Still, investors may yet have reasons to cry.

For one thing, users of B&L's popular ReNu MultiPlus solution have been coming down with the rare eye fungus, too. For another, the company's accounting problems have yet to be resolved -- making its financial statements unreliable -- and its liquidity looks risky to some.

In its latest update on Friday, the Centers for Disease Control and Prevention confirmed 122 cases of Fusarium keratitis across 33 states and territories. The vast majority of those cases involved users of ReNu with MoistureLoc. However, as law firms have started pointing out, a fair share involved other ReNu products as well.

In fact, one law firm announced last week -- even before the CDC update -- that it has been retained by more than 30 ReNu MultiPlus customers who "suffered significant eye injuries" after using the solution. Of that total, the firm said, more than 10 have undergone corneal transplants or will have to do so in the future.

As a result, the firm insists that B&L should stop selling MultiPlus altogether.

"This is a public health hazard that is escalating," Jerrold Parker, founding partner of New York-based Parker & Waichman, said last week. "Until further information is available to substantiate the safety of Bausch & Lomb's ReNu contact lens solutions, the only prudent course is to recall the products to prevent additional infections."

Instead, B&L continues to suggest that former MoistureLoc users switch to other ReNu products. On Monday, in fact, the company insisted that both ReNu MultiPlus and ReNu Multi-Purpose boast "longstanding unsurpassed records of safety and effectiveness."

Risky Statements

B&L can hardly say the same about its financial statements. Rather, the company listed a series of ongoing risks when delaying its latest quarterly report on Thursday.

B&L has identified revenue recognition problems in several foreign markets that will likely slash past sales by tens of millions of dollars at least. In addition, the company has uncovered problems in the U.S. that could further threaten past results as well. It continues to investigate a number of issues -- citing weaknesses in its internal controls -- and has warned investors against relying on its financial statements in the meantime.