Allergan lawsuit against Valeant, Pershing Square cites securities violations

On Aug. 1, Allergan filed a lawsuit in the United States District Court for the Central District of California against Valeant Pharmaceuticals, Pershing Square Capital Management and its principal, William A. Ackman, citing violations to federal securities laws prohibiting insider trading, engagement in fraudulent practices and failure to disclose legally required information.A hearing on the case in a federal court in California was scheduled for Aug. 20. Neither Allergan nor Valeant had reported results of the hearing as of OSN press deadline, although an Allergan press release issued Aug. 27 stated that Allergan has requested “an expedited schedule for discovery and a motion for a preliminary injunction.” The release further announced a special meeting of stockholders on Dec. 18; the injunction order would “prevent Valeant, Pershing Square, and Mr. Ackman from voting their shares in any special meeting.”