Allergan, Inc. (NYSE:AGN) lost a crucial court bid that could have allowed the company to stop a shareholder meeting planned by Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and William Ackman. Ackman joined hands with Valeant in April with a cash-and-stock bid of $54 billion. (You can see entire holdings of William Ackman).
Allergan, Inc. (NYSE:AGN) approached David Carter, Federal Judge in Sana Ana California, to speed up its case and give a ruling within 120 days. Allergan filed a lawsuit citing that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) violated security guidelines while filing its takeover bid on the company. However, Carter refused to order a ruling in favor of Allergan, Inc. (NYSE:AGN) and reflected that he was
“reluctant to create a precedent that allows corporations to demand at will the immediate attention and input of the federal courts in order to resolve intra-corporate disputes that might be better left to the dynamic free market or to the state court.”
Carter further added that he appreciated the seriousness of federal securities claims filed by Allergen Inc. but he could not see any justification in accelerating the ruling process over other waiting cases.
Ackamn hold 10% shares of the Allergan Inc., although the company filed a lawsuit claiming that Ackamn purchased these shares with the intention of acquiring the company. Allergan even filed a lawsuit on Ackman and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) claiming that their alliance was against the insider-trading laws and invalid. However, Ackman and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) have denied the claims are false and Ackman’s investment is legal. Both the parties have filed a lawsuit against Allergan, Inc. (NYSE:AGN) accusing the firm of putting up false charges of illegal partnership between the two partners.
This article has been written by Prakash Pandey and edited by Serkan Unal.