, Columnist
Bill Ackman's Big Triumph Becomes His Big Problem
One of the activist investor's greatest deals is under legal attack. There's no easy way out.
Betwixt and between.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Most of the time, securities class-action lawsuits are nothingburgers. A company’s stock price drops unexpectedly, some plaintiffs’ lawyers sue on behalf of supposedly aggrieved investors, and after a year or two of legal wrangling, the parties settle for what amounts to pocket change for the corporation.
But every once in a while, a securities class-action suit comes along that combines high stakes, serious legal issues and potentially astronomical damages. A case called “In Re Allergan Inc Proxy Violation Securities Litigation” is one such lawsuit. It should be getting a lot more attention than it is.