Valeant and Ackman must face an insider trading lawsuit
In yet another setback for Valeant Pharmaceuticals, a federal judge ruled that a lawsuit accusing the drug maker and one of its biggest shareholders of insider trading can proceed.
The lawsuit, which was filed by shareholders, alleges that Valeant, hedge fund manager William Ackman and his Pershing Square Capital Management violated securities laws by failing to disclose legally required information in connection with their failed effort to buy Allergan. The unsolicited $51 billion bid for Allergan, which is best known for selling Botox, was launched in April 2014.