Valeant strikes deal to reduce its portion of Allergan settlement to $96.25M
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LAVAL, Que. — Valeant Pharmaceuticals International, Inc. (TSX:VRX) says it has agreed to pay US$96.25 million to settle lawsuits filed in California in the wake of the unsuccessful attempted hostile takeover in 2014 of Botox maker Allergan Inc.
The company says in a news release the rest of the agreed settlement of US$290 million, about 67 per cent, will be covered by co-defendant Pershing Square Capital Management, L.P.
Pershing Square, an American hedge fund, says in a separate release that Laval, Que.-based Valeant had originally agreed to pay 60 per cent of the settlement but the two disagreed on "desirability and timing" of the move and the U.S. investment company will pay more to take control.
Both companies say they are admitting no wrongdoing by settling. The lawsuit accusing them of insider trading was brought by shareholders who sold Allergan stock in the two months before the US$51-billion bid was launched.
Pershing Square CEO Bill Ackman says he still believes the lawsuit had “absolutely no merit,” but settling now will save resources required for a lengthy litigation.
Valeant CEO Joseph Papa said settling the suit will allow it to focus on the "transformation" of the drug company.
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