Investment holding company Pershing Square Holdings, Ltd. announced on Friday it had agreed with Valeant Pharmaceuticals International Inc. on a settlement split regarding a lawsuit from 2014. Valeant and its then major shareholder Pershing Square were accused of insider trading in relation to their bid to take over the pharmaceutical company Allergan plc. The CEO of Pershing Square Bill Ackman (pictured) said he believes "the case had absolutely no merit" but decided that it is in the best interest of the company's investors to reach a settlement now.
The two companies will split $290 million of the total settlement, where Pershing Square is required to pay $193.75 million and Valeant will pay $96.25 million. In exchange for paying a greater percentage of the settlement, Pershing Square acquired control of the settlement of the litigation earlier in December. The hedge fund previously set aside $75 million for legal expenses in relation to this case.
The settlement is subject to court approval.
