Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Edvard Pettersson
Dec. 18 — Bill Ackman, who made about $2.5 billion from his investment in Botox maker Allergan Inc. ahead of a takeover attempt by Valeant Pharmaceuticals International Inc., was accused of insider trading by an Allergan shareholder.
Ackman's Pershing Square Capital Management LP was only able to generate such outsized profits by “taking advantage of insider information provided by Valeant and acquiring a very significant stake in Allergan ahead of the broader market,” according to the complaint filed in the U.S. District Court for the Central District of California. In the Dec. 16 complaint, investor Anthony Basile said he sold Allergan shares before Valeant announced its takeover plans.
Allergan rejected each offer Valeant made and last month agreed to sell itself instead to Actavis Plc for $219 a share. That was about double the share price when Ackman started accumulating his stake in the company in February. Allergan in August accused Ackman and Valeant of insider trading in a lawsuit pending in the same federal district.
Basile seeks to represent Allergan investors who sold shares from Feb. 25 to April 21, the period during which Ackman acquired his shares and before Valeant went public with its interest in a merger. He seeks unspecified damages for alleged securities law violations by Valeant and Pershing Square.
Pershing Square said it's reviewing the complaint and will respond in due course. Valeant declined to comment on it.
Allergan last month lost a bid to prevent Ackman from voting at a shareholder meeting he had called to oust Allergan directors opposed to the Valeant takeover. Ackman withdrew his request for a proxy vote after Allergan agreed to the $66 billion takeover by Actavis.
Allergan, based in Irvine, Calif., said in a Dec. 13 court filing that it intends to proceed with its remaining claims against Ackman. New York-based Pershing Square said in the joint filing that it intends to seek dismissal of Allergan's remaining claims as moot.
To contact the reporter on this story: Edvard Pettersson in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com
©2014 Bloomberg L.P. All rights reserved. Used with permission.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)