Aug 8 The federal judge in California overseeing
Allergan Inc's insider trading lawsuit against Valeant
Pharmaceuticals and activist investor William Ackman
has set an Aug. 20 hearing date to decide on a fast-track
schedule for the case, according to court documents.
Allergan, fighting a hostile takeover by Valeant and
Ackman's Pershing Square Capital Management hedge fund, filed
the lawsuit on Aug. 1. The Botox maker said in the complaint
that Valeant and Ackman violated securities laws on tender
offers when they teamed up on a $48 billion cash and stock
The case could have implications for efforts by Pershing
Square, which owns nearly 10 percent of Allergan's shares, and
Valeant to call and hold a meeting of Allergan shareholders to
vote in new board members.
Under Allergan's bylaws, Ackman needs 25 percent of
shareholders to ask the company to call a meeting. Pershing
Square has been gathering investor support and has said that it
plans to submit the request in mid-August.
Those bylaws also say that Allergan cannot accept a special
meeting request if there is a violation of securities rules,
such as insider trading.
Ackman and Valeant offered to buy Allergan on April 22 and
laid out a plan for spending cuts at the company. It later
launched a hostile tender offer for its shares.
Allergan has mounted a defense that includes its own
cost-cutting plans, and has urged shareholders not to support
the meeting or the deal.
Judge David Carter in U.S. District Court, Central District
of California, said in the documents that he would consider
Allergan's request for an expedited schedule at a hearing rather
than outside of "normal procedures," as requested.
(Reporting by Caroline Humer; Editing by Jonathan Oatis)