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.”
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