Class action against Valeant, Pershing Square alleges insider trading
SANTA ANA, Calif. (Legal Newsline) - A class action lawsuit was filed against Valeant Pharmaceuticals and Pershing Square Capital Management on Dec. 16 alleging insider trading for stock in Allergan, Inc.
The suit, filed by Anthony Basile, lists events beginning in February that allegedly led to Valeant's tender offer for Allergan in June. The events include allegations that Valeant formed a shell entity, called PS Fund, with Pershing Square to purchase a significant stake in Allergan.
The suit also alleged that Valeant provided insider information to Pershing Square regarding Valeant's planned tender offer for Allergan. This allowed Pershing Square to use the shell entity to acquire Allergan stock.
The reported profit from Pershing Square's investment in Allergan by November was $2.5 billion. The plaintiff demands a jury trial and seeks damages with interest awarded under the Securities Exchange Act.
U.S. District Court for the Central District of California-Southern Division case no. 8:14-cv-02004