Pershing Square, Valeant to appear in court on insider trading suit settlement

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Jan 2 – A U.S. court on Tuesday asked Valeant
Pharmaceuticals International Inc and activist investor
Bill Ackman’s Pershing Square to appear for a hearing
to discuss the proposed settlement in an insider trading
lawsuit.

The hearing, set for Jan. 16, comes after Pershing Square
and Valeant last week decided to pay $290 million to settle the
lawsuit that accused them of insider trading before bidding for
Allergan Plc in 2014.

The lawsuit was filed on behalf of investors who sold
Allergan shares in the two months before Pershing Square Capital
Management and Valeant made an unsolicited $51 billion bid for
Allergan.

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

“Today’s order is a mandated step in the settlement
process,” a Valeant spokeswoman said in an email to Reuters. “We
believe the settlement is fair, reasonable and adequate, and we
look forward to explaining our position to the Court.”

Pershing Square could not be reached for comment outside
regular business hours.

-(Reuters)