LAVAL, Que. – Valeant Pharmaceuticals International Inc. says a U.S. District Court judge gave his preliminary approval Tuesday to a US$290-million settlement of lawsuits stemming from the unsuccessful attempted hostile takeover in 2014 of Botox maker Allergan Inc.
As part of the deal agreed to in December, Quebec-based Valeant (TSX:VRX) will pay US$96.25 million, with co-defendant Pershing Square Capital Management, L.P. paying the rest.
Valeant spokeswoman Lainie Keller says approval is subject to submission of final papers and associated hearings.
She says that the company continues to believe the resolution of the litigation is in the best interests of the company, enabling it to focus its attention and resources on the transformation of Valeant.
Both companies have said they are admitting no wrongdoing by settling. The lawsuit accusing them of insider trading was brought by shareholders who sold Allergan stock in the two months before the US$51-billion bid was launched.
Pershing Square CEO Bill Ackman has said he believes the lawsuit was without merit but settling will save resources required for a lengthy litigation.