• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Drug Delivery Business

  • Clinical Trials
  • Research & Development
  • Drug-Device Combinations
  • FDA
  • Pharmaceuticals
  • Policy

Valeant, Ackman agree to split costs in shareholders class action

February 14, 2017 By Sarah Faulkner

Valeant PharmaceuticalsValeant, Ackman agree to split costs in shareholders class action (NYSE:VRX, TSE:VRX) and William Ackman’s hedge fund Pershing Square Capital Management reportedly agreed to split litigation costs in a class action lawsuit brought on by shareholders over an alleged insider trading scheme in Allergan (NYSE:AGN)’s 2014 takeover bid.

In June 2014, Valeant offered a tender bid for Allergan, which was followed by a 7 month-long hostile pursuit by Valeant and Ackman’s hedge fund. In November 2014, Allergan publicly announced that it had accepted a $66 billion takeover bid from Actavis.

The lawsuit was filed on behalf of investors who sold Allergan shares in the 2 months before the defendants announced a $51 billion bid for Allergan. By then, Pershing had amassed a 9.7% stake in Allergan, which jumped in value after the bid was announced.

Investors claimed that Pershing bought those shares knowing that Valeant was preparing a bid that could become hostile.

In November last year, a U.S. judge in California ruled that Valeant and Pershing must face the class action lawsuit, despite their claim that there was no intent to defraud. The pair also argued that they breached no duties by sharing information before the company launched their takeover bid.

The judge was not convinced, saying there were “serious questions” as to whether “substantial steps” were taken toward a possible hostile bid.

Valeant spokeswoman Laurie Little said the Quebec-based company was disappointed with the decision, and believes it complied with securities laws.

“We look forward to presenting evidence to establish that we did nothing improper,” she added.

In January this month, Allergan announced it will pay a $15 million fine for failing to disclose its merger talks with Actavis.

The SEC said that Allergan told investors that the company wasn’t engaged in merger talks and that Valeant’s bid was inadequate.

Filed Under: Legal News, Wall Street Beat Tagged With: Actavis, Allergan, Valeant Pharmaceuticals

IN CASE YOU MISSED IT

  • Abbott will spend $450M to up FreeStyle Libre production in Ireland
  • Better Therapeutics Q2 beats Street as it prepares to submit diabetes therapy for FDA review
  • Study backs Fluidx embolic device for vessel filling
  • Senseonics stock is up as it sticks by revenue guidance
  • Rapid Dose closes first tranche of $5M financing

Primary Sidebar

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Need Drug Delivery Business News in a minute? We Deliver!
Drug Delivery Enewsletters get you caught up on all the mission critical news you need in med tech. Sign up today.

Signup for the newsletter

Footer

Drug Delivery Business News Logo

MassDevice Medical NETWORK

MassDevice
DeviceTalks
Medical Tubing & Extrusion
Medical Design & Outsourcing
MedTech100 Index
Drug Discovery & Development
Pharmaceutical Processing World
Medical Design Sourcing
R&D World

DRUG DELIVERY BUSINESS NEWS

Subscribe to Drug Delivery’s E-Newsletter
Advertise with us
About
Contact us
Privacy
Listen to our Weekly Podcasts
Add us on FacebookFollow us on TwitterConnect with us on LinkedIn

Copyright © 2022 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Advertise | Privacy Policy | RSS