(Bloomberg) -- Bausch Health Cos.’ plan to spin off a vision-care unit is a “fraudulent transfer” aimed at protecting valuable assets from securities litigation, a group of investors said.

Several institutional investors on Thursday said in a statement that they sued Bausch in New Jersey state court seeking a ruling that its proposed spin-off of Bausch + Lomb is voidable. The same investors, who include GMO Trust and SunAmerica Asset Management, have been engaged in securities litigation with Bausch, formerly known as Valeant Pharmaceuticals, since 2016.

They claim the company is seeking to transfer its valuable assets to Bausch + Lomb to put them beyond the reach of the securities fraud case. The vision care business contributes half of the company’s revenue, and its loss could lead to the rump company’s collapse, according to a copy of the complaint.

“As a result of the spin-off, Bausch Health will be left with, at best, remaining assets that will be insufficient to withstand normal, cyclical industry trends, dooming Bausch Health to failure,” the investors said.

Bausch Health didn’t immediately respond to a request for comment. 

The plaintiffs sued the company after an accounting and price-gouging scandal caused the share price to plummet in 2016. They and other investors who have sued are seeking $4.2 billion in damages from Bausch.

“Faced with an inescapable multi-billion dollar civil liability, Bausch Health has sought to delay the resolution of plaintiffs’ lawsuits and to effectuate a corporate transaction designed to prevent or impede plaintiffs from recovering their substantial losses,” the investors said in the suit.

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