Valeant strikes deal to scale back its portion of Allergan settlement to $96.25M

LAVAL, Que. — Valeant Prescription drugs Worldwide, Inc. (TSX:VRX) says it has agreed to pay US$96.25 million to settle lawsuits filed in California within the wake of the unsuccessful tried hostile takeover in 2014 of Botox maker Allergan Inc.

The corporate says in a information launch the remainder of the agreed settlement of US$290 million, about 67 per cent, can be lined by co-defendant Pershing Sq. Capital Administration, L.P.

Pershing Sq., an American hedge fund, says in a separate launch that Laval, Que.-based Valeant had initially agreed to pay 60 per cent of the settlement however the two disagreed on “desirability and timing” of the transfer and the U.S. funding firm pays extra to take management.

Each corporations say they’re admitting no wrongdoing by settling. The lawsuit accusing them of insider buying and selling was introduced by shareholders who bought Allergan inventory within the two months earlier than the US$51-billion bid was launched.

Pershing Sq. CEO Invoice Ackman says he nonetheless believes the lawsuit had “completely no benefit,” however settling now will save assets required for a prolonged litigation.

Valeant CEO Joseph Papa stated settling the go well with will permit it to deal with the “transformation” of the drug firm.