Insider-Dealing Charges: Allergan sues Valeant, Ackman
Botox maker Allergan Inc accused rival Valeant Pharmaceuticals International of violating securities laws
WASHINGTON:
Botox maker Allergan Inc accused rival Valeant Pharmaceuticals International and billionaire investor William Ackman of violating securities laws by using insider information as they prepared a takeover bid for the drug company. In a civil lawsuit filed in federal court in California, Allergan said Ackman’s Pershing Square Capital Management and Valeant “hatched” an “improper and illicit insider-trading scheme” that allowed the hedge fund to buy Allergan shares, knowing about Valeant’s planned $51 billion takeover bid. Valeant and Pershing Square said the complaint was intended to prevent them from calling a special meeting of Allergan shareholders to vote on their board nominees. “This is a shameless attempt by Allergan to delay the shareholders’ fundamental right to call a special meeting,” Ackman said in a statement.
Published in The Express Tribune, August 3rd, 2014.
Botox maker Allergan Inc accused rival Valeant Pharmaceuticals International and billionaire investor William Ackman of violating securities laws by using insider information as they prepared a takeover bid for the drug company. In a civil lawsuit filed in federal court in California, Allergan said Ackman’s Pershing Square Capital Management and Valeant “hatched” an “improper and illicit insider-trading scheme” that allowed the hedge fund to buy Allergan shares, knowing about Valeant’s planned $51 billion takeover bid. Valeant and Pershing Square said the complaint was intended to prevent them from calling a special meeting of Allergan shareholders to vote on their board nominees. “This is a shameless attempt by Allergan to delay the shareholders’ fundamental right to call a special meeting,” Ackman said in a statement.
Published in The Express Tribune, August 3rd, 2014.