Botox Company Sues Hedge Fund Founder Ackman For Insider Trading

New York (HedgeCo.Net) – Bill Ackman, hedge fund founder and activist investor, has responded to the lawsuit filed on the 1st of August by Botox-producer Allgeran: “This is a shameless attempt by Allergan to delay the shareholders’ fundamental right to call a special meeting and vote their shares. Allergan is threatened by our progress toward calling the special meeting. This scorched-earth approach is further evidence of the board’s and management’s further entrenchment.”

Allergan on Friday filed suit against Valeant Pharmaceuticals International Inc., Bill Ackman and the Ackman-owned hedge fund, Pershing Square, alleging they used inside information to try and make a profit at the expense of Allergan shareholders.

Allergan charges that Pershing Square bought $3.2 billion in Allergan shares between February and April of this year while fully aware of Valeant’s takeover intentions. Ackman’s actions deprived shareholders who sold stock to him of $1.2 billion in value gains, the lawsuit says.

MarketWatch reports: “The lawsuit appears to be an attempt to thwart a coming shareholder vote on the merger by forcing Ackman to sell his stake in Allergan. Ackman’s shares, plus his influence among investors, is considered critical in bringing the matter to a vote.”

Ackman, CEO of Pershing Square, continued, “Allergan’s determination to waste money on a baseless lawsuit against its largest shareholder further demonstrates why this board of directors should be removed.”

Alex Akesson
Editor for
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!

This entry was posted in Hedge Fund Strategies, HedgeCo News. Bookmark the permalink.

Leave a Reply