Valeant will pay over $96 million to resolve litigation

Canada’s Valeant Pharmaceuticals International (TSX: VRX) and Pershing Square Capital Management have preliminarily agreed to resolve the claims of the litigation for $290 million, subject to the court's approval, to settle a lawsuit that accused them of insider trading in making an unsolicited $51 billion bid for Ireland-domiciled Allergan (NYSE: AGN).

Valeant will pay $96.25 million, or 33%, of the settlement under the terms of a recently revised Litigation Management Agreement with the other defendants. Additionally, as part of the agreement, the company and the other defendants admit no wrongdoing.

"We believe this agreement to resolve the legacy litigation is in the best interests of the company, because it enables us to focus our attention and resources on the transformation of Valeant," said Joseph Papa, chairman and chief executive of Valeant. "Though we always have remained confident in our position and were prepared to try these cases on their merits, this agreement will eliminate disruption to our business," he added.