Allergan claims insider trading during lead-up to hostile bid

Mr Ackman did 97% of the buying, picking up 25.4 million Allergan shares for $3.22 billion, all the while strenuously maintaining the fiction that the purchases were by Valeant , Allergan said in its complaint. Those shares were worth 15% more after Valeant announced its merger proposal – an on-paper gain for Mr Ackman worth about $1 billion. Unfortunately for th, the clear requirents of the federal securities laws cannot be so easily defeated by a ‘now you see it, now you don’t’ sleight of hand, the complaint reads.In a fashion that’s become typical over months of barb-trading, Valeant has hit back, labeling the lawsuit frivolous and a desperate Allergan attpt to interfere with the special shareholder meeting it’s trying to secure in order to replace Allergan’s board and strike its takeover defenses. Allergan is threatened by our progress toward calling the special meeting, Mr Ackman said in a statent. This scorched-earth approach is further evidence of the board’s and managent’s further entrenchment. Whether or not a delay is Allergan’s desired outcome, it might be an effect of the litigation.The lawsuit adds another layer of uncertainty that could thwart the buyout, too. Even if an investor thinks Allergan does not stand a 100% chance of winning, but 50% or 30% or even 10%, the likelihood of a deal closing has just been reduced by whatever chance one assumes Allergan wins. Valeant’s chief executive officer Mr Michael Pearson,, who has said he expects to rally the necessary shareholder support to call the meeting and, once it takes place, to get a deal done, isn’t backing down. We rain committed to pursuing this compelling combination, which will create an unrivaled platform for growth and value creation, Mr Pearson said in a statent.