[REUTERS] Allergan Inc. has filed a federal lawsuit claiming a hostile takeover of its business was, in part, funded by illegal insider trading.
The pharma giant filed documents at Santa Ana CA. claiming a subsidiary of Pershing Square Capital Management, controlled by William Ackman, purchased almost ten-per-cent of its stock whilst having access to material non public information about Valeant Pharmaceuticals International (VPI) intention to launch a hostile takeover.
Allergan claims an indebted VPI approached Ackman's Pershing Capital for finance and that Ackman purchased shares in Allergan on foot of that information.
His share interest jumped $1.2 billion when the VPI takeover entered the public domain - four months after Ackman acquired an interest.
Allergan has petitioned the U.S. District Court for the Central District of California to strike out the share purchase for what it claims is a violation of insider trading regulation.