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Insider-Trading Suit Complicates Ackman-Valeant Breakup

  • Ex-Allergan shareholders allege they were duped by investor
  • Drugmaker to shoulder most of settlement if one is reached
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Why Ackman's Valeant Trade Turned Into a Bust

When Bill Ackman unceremoniously dumped his Valeant stock in March, it looked like he was done with the formerly high-flying drugmaker.

Now, a common foe may turn the sudden breakup into a drawn-out, messy divorce. Ackman and Valeant Pharmaceuticals International Inc. are co-defendants in a $2 billion lawsuit brought in December 2014 by former investors in Botox-maker Allergan Inc. The plaintiffs allege they were conned by Ackman when they sold him their Allergan shares in 2014, not knowing that the billionaire was teaming up with Valeant in a hostile takeover bid that would send Allergan’s stock soaring.