Allergan Files Insider-Trading Lawsuit Against Valeant
Allergan Inc. filed a lawsuit in the U.S. District Court for the Central District of California against Valeant Pharmaceuticals International, Pershing Square Capital Management and its principal, William A. Ackman. The suit alleges that Valeant, Pershing Square and Ackman violated federal securities laws prohibiting insider trading, engaged in other fraudulent practices and failed to disclose legally required information.
In a corporate press release, Allergan said it filed the lawsuit to ensure that all of its stockholders have the opportunity to make decisions regarding their investment in the company based on compliant, full and fair disclosures, and to ensure that any stockholders voting on corporate matters acquired their shares in accordance with the law.
The complaint alleges that between February 2014 and April 2014, Pershing Square purchased Allergan stock and securities then valued at over $3.2 billion from unknowing company stockholders while fully aware of Valeant's nonpublic takeover intentions, thereby securing for itself and depriving the selling stockholders of value appreciation worth approximately $1.2 billion upon Valeant's announcement of its initial offer on April 22, 2014. Read the full release