Pershing Square, Valeant Agree to Pay $290 Million in Settlement; Judge Will Decide Whether Deal is Fair

January 5, 2018: By Jon Swedien

Legal issuePershing Square and Valeant Pharmaceuticals have agreed to pay $290 million to settle a lawsuit accusing the companies of insider trading before making a bid to buy Allergan in 2014, both companies announced in late December 2017.

However, a federal judge still must approve the deal.

US District Judge David Carter has questioned the proposed settlement, saying he has “substantial questions whether the settlement amount is reasonable and fair.” Carter set a hearing for Jan. 16 for attorneys from both corporations and the plaintiffs to explain their positions on the deal, according to media reports.

Both companies have said they are not guilty of the insider trading charges brought on behalf of investors who sold Allergan shares in the two months before the companies’ unsolicited $51 billion bid for Allergan.

Pershing Square CEO Bill Ackman and Valeant CEO Joseph Papa—who took the position in 2016 after the alleged insider trading—both said the settlement was in their companies’ best interest because it would allow them to move on.

Under the proposed settlement, Pershing Square will pay about two-thirds of the settlement, or $193.75 million. Valeant will pay about a third, or $96.25 million.

Need Deeper Analysis? Sign up for Market Scope's monthly newsletter to get in-depth coverage of the ophthalmic market, including quarterly procedure volumes based on survey data and meeting coverage from around the world.

Recent Ophthalmic News

US Health Secretary Alex Azar Takes Aim at Rebates in US Senate Hearing

Beyeonics Surgical Raises $11.5 Million in Initial Funding Round

MeiraGTx Raises $75 Million in Initial Public Offering

GenSight to Pursue Approval for LHON Gene Therapy Candidate, Despite Phase III Setback

Optovue Receives FDA Clearance for AngioAnalytics, First OCT Angiography Metrics

Nexy Robotic Retinal Imaging System Receives FDA Clearance

Ocutrx Receives US Patent for Oculenz AR Glasses for Macular Degeneration

Allergan’s Bimatoprost SR Demonstrates Noninferiority to Timolol in Phase III Glaucoma Study

KKR to acquire Envision Healthcare, Including Amsurg ASC Business

Ophthalmologist Carmen Puliafito, MD, Seeks to Regain Medical License

Avedro Gains J Code for Photrexa Formulations in Preliminary CMS Decision

EyeGate Seeks to Study Ocular Bandage Gel in Punctate Epitheliopathy

Nicox, Ironwood to Collaborate on Novel Ophthalmic Treatments

US FDA Approves MDGH’s Moxidectin for Treatment of River Blindness

Bausch + Lomb Enrolls First Patient in Trial for enVista MX60EF Trifocal IOL

Cincinnati Eye Institute Partners with Private Equity Firm to Pursue National Expansion

Ophthotech Enters Gene Therapy Deals with University of Florida, University of Pennsylvania

Teva’s Launches Generic Version of Restasis in Canada

Clearside’s Phase II Trial for DME Candidate Meets Primary Endpoint

Orasis Raises $13 Million in Series B Financing

Coming soon

2018 Glaucoma Device Report: A Global Market Analysis for 2017 to 2023