Allergan sues Valeant and Pershing Square, alleging insider trading

US Botox maker Allergan (NYSE: AGN), the subject of a hostile  $53 billion takeover attempt by Canada’s Valeant Pharmaceuticals International (TSX: VRX), is suing the latter, alleging insider trading.

Allergan has filed a law suit in the US District Court for the Central District of California against Valeant, hedge fund Pershing Square Capital Management, and its principal, William Ackman, alleging that Valeant, Pershing Square and Mr Ackman violated federal securities laws prohibiting insider trading, engaged in other fraudulent practices, and failed to disclose legally required information.

After careful consideration, said Allergan, it decided to file the law suit in order to ensure that all of its stockholders have the opportunity to make decisions regarding their investment in the company based on compliant, full and fair disclosures, and to ensure that any stockholders voting on corporate matters acquired their shares in accordance with the law.