Judge Expedites Pershing Square Lawsuit Against Allergan

Aug 28 2014 | 11:02am ET

Allergan Inc. may have to wait in line to proceed with its insider-trading lawsuit against Pershing Square Capital Management, but the hedge fund’s claims against the Botox-maker are getting the fast-track treatment denied Allergan.

Delaware’s chancellor, Andre Bouchard, granted Pershing Square and Valeant Pharmaceuticals International’s request for an expedited hearing of their case against Allergan. The two, which are working together on Valeant’s $53 billion hostile takeover bid for Allergan, want the courts to certify their request for a special meeting—at which they hope to take control of Allergan’s board—and to bar Allergan from making any acquisitions before that meeting.

Allergan this week announced that the meeting would be held on Dec. 18—pending a review of the 1,500 pages in consent forms from investors representing 31% of its shares submitted on Friday by Pershing Square and Valeant. But that meeting could be moved up following a three-day trial set to begin on Oct. 6.

Bouchard noted that “Allergan may not want a special meeting at all.”

Allergan has sued Pershing Square and Valeant in California federal court, accusing the two of insider trading and asking that Pershing Square’s 9.7% stake in the company be cancelled. But a judge in Santa Ana rejected Allergan’s bid for an expedited hearing, directing the parties to duke it out in Delaware.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of