BRIEF—Pershing and Valeant called to appear at court hearing on Jan 16

A California court has requested Canada-based Valeant Pharmaceuticals International and Bill Ackman's hedge fund Pershing Square to appear for a hearing, set for January 16, to discuss the proposed settlement in an insider trading lawsuit.

Last week, Pershing Square and Valeant decided to pay $290 million to settle a lawsuit that accused them of insider trading before bidding $51 billion for Ireland-incorporated Allergan in 2014, a deal that was never consummated. Valeant is paying $96.25 million in the settlement, while Pershing in paying the remainder.

The court has “substantial questions regarding whether the settlement amount is reasonable and fair,” according to documents filed in the US District Court, Central District of California.

Despite the news, Valeant’s shares were up 6.3% at $23.16 by mid-morning today.