- A U.S. judge rejects arguments made by Valeant (VRX), Bill Ackman, and Pershing Square Capital that an investor lawsuit should be dismissed because their actions surrounding the Allergan bid were not fraudulent.
- The lawsuit is from investors who sold Allergan (NYSE:AGN) stock in the two months before the defendants announced a $51B bid for the company, which later became hostile.. Little did investors know, but they may have been selling to Pershing which quietly built up a 9.7% stake in AGN, knowing Valeant was prepping a bid.
- In other Pershing Square news, the hedge fund lost 2.8% of its value in October, and now down 21.2% YTD.