Valeant Pharmaceuticals International Inc. and activist investor William Ackman's Pershing Square Capital Management LP will pay $290 million to settle lawsuits related to an attempted acquisition of Allergan plc.
According to the allegations, as reported by Reuters, Valeant and William Ackman violated securities law by using insider information during the attempt to acquire Allergan in 2014.
Valeant will pay $96.25 million, or 33% of the settlement costs, while Pershing Square will pay $193.75 million.
Additionally, as part of the agreement, the company and the other defendants admit no wrongdoing.
"We continue to believe the case had absolutely no merit," said Pershing Square CEO Bill Ackman. "We decided, however, that it was in the best interest of our investors to settle the case now instead of continuing to spend substantial time and resources pursuing the litigation," he added.
Meanwhile, Valeant Chairman and CEO Joseph Papa said the agreement to resolve the litigation is in the best interests of the company. "Though we always have remained confident in our position and were prepared to try these cases on their merits, this agreement will eliminate disruption to our business," said Papa.
Valeant originally agreed to pay 60% of the settlement amount, but the company and Pershing Square had different views on the desirability and timing of settling the case, which previously prevented settlement, according to Pershing Square.
On Dec. 19, Pershing Square acquired control of the settlement in exchange for agreeing to pay a greater percentage of the settlement costs.