At last check Bausch Health shares were down 8.1% at $25.79.
The Laval, Quebec, company reported its loss widened to $1.52 billion, or $4.30 a share, from $344 million, or 98 cents, in the year-earlier quarter.
Bausch Health reported an operating loss of $1.08 billion, compared with operating earnings of $25 million a year earlier.
Analysts surveyed by FactSet were expecting the company had earned an adjusted $1.15 a share. FactSet's comparison actual figure for Bausch Health was adjusted earnings of $1.05 a share.
The net loss was driven mainly by the accrual of legal reserves to resolve the legacy Valeant stock-drop litigation, other related actions, and continuing legal matters, the company said.
In December, Bausch Health said the parties involved in the Valeant case agreed to resolve the action for $1.21 billion. The case was filed in U.S. District Court in New Jersey in October 2015.
The company previously had been known as Valeant Pharmaceuticals.
The plaintiffs had charged that Valeant stock traded at artificially inflated prices due to false and misleading statements made by the company or undisclosed adverse information about the company's business and prospects. The company admitted no wrongdoing as part of the settlement.
The settlement enables the company to further emerge from the tide of litigation that has seen more than 160 cases settled or resolved since 2017, Canadian Press reported.
Revenue totaled $2.22 billion, up from $2.12 billion and ahead of FactSet's call for $2.2 billion.
Revenue at the company's Bausch & Lomb division rose to $1.24 billion from $1.21 billion, with the latest figure matching the FactSet consensus.
Bausch Health is expecting 2020 revenue of $8.65 billion to $8.85 billion, compared with the FactSet consensus of $8.78 billion.