NEW YORK--(BUSINESS WIRE)--Entwistle & Cappucci LLP (“Entwistle & Cappucci”) today announced that the firm was appointed co-lead counsel in a consolidated class action alleging that Valeant Pharmaceuticals International, Inc. (“Valeant”) and Pershing Square Capital Management, L.P. (“Pershing Square”) engaged in an illegal insider trading and front-running scheme ahead of Valeant’s attempted hostile takeover of Allergan, Inc. (“Allergan”), in violation of the Securities Exchange Act of 1934 (“Exchange Act”). The case is pending in the United States District Court for the Central District of California.
U.S. District Judge David O. Carter appointed the firm as lead counsel, along with Susman Godfrey L.L.P. Entwistle & Cappucci Senior Partner Vincent R. Cappucci stated “the firm very much appreciates the court’s appointment to serve as co-lead counsel and we are devoting significant resources to achieving a successful recovery for the class.”
The appointment of co-lead counsel is the latest development in this ongoing complex securities litigation. On June 30, 2017, the firms filed a securities class action complaint on behalf of persons or entities that traded certain derivative securities of Allergan (NYSE: AGN) during the period February 25, 2014 through April 21, 2014, inclusive (the “Class Period”), and who thereby sustained damages (the “Class”).
The class action asserts claims under Sections 14(e), 20A and 20(a) of the Exchange Act arising from the 2014 attempted acquisition of Allergan by Valeant and its affiliates. The complaint alleges that Valeant provided Pershing Square with information regarding Valeant’s plans to launch a hostile takeover and tender offer for Allergan, and in exchange Pershing Square agreed to secretly acquire nearly 10% of Allergan’s stock and commit those shares to support Valeant’s bid. The complaint further alleges that, as a result of receiving material nonpublic information regarding Valeant’s plans, Pershing Square obtained a risk-free trading opportunity to front-run Valeant’s bid and accumulate a multi-billion dollar stake in Allergan before the bid became public. As a direct result of the defendants’ alleged scheme, Class members that sold Allergan call options, purchased Allergan put options and/or sold Allergan equity forward contracts during the Class Period did so at prices that did not reflect the material nonpublic information known to Defendants. Lead Plaintiff seeks an award of damages and prejudgment interest on behalf of the Class.
The derivatives class is represented by firm partners Andrew J. Entwistle, Vincent R. Cappucci, Arthur V. Nealon and Robert N. Cappucci of Entwistle & Cappucci.
The case is In re Allergan Inc. Proxy Violation Derivatives Litigation, Case No. 2:17-cv-04776, U.S. District Court, Central District of California.
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