A U.S. District court tentatively denied a request by Valeant Pharmaceuticals International Inc. and activist investor Bill Ackman to dismiss claims of insider trading by Allergan Inc.'s shareholders, Bloomberg News reported.
The shareholders of Allergan Inc., which is a part of Allergan plc, alleged that Ackman bought their shares while he secretly knew that Valeant was planning a hostile bid.
Judge David Carter of the U.S. District Court, Central District of California, Santa Ana, issued the tentative ruling and the defendants will likely face a jury trial in January 2018, the news outlet reported.
According to Bloomberg News, the case depends on whether in 2014, Ackman's Pershing Square Capital Management and Valeant planned to take their offer directly to the Botox maker's shareholders instead of negotiating a deal with management.
The case also depends on whether Pershing Square's efforts to buy Allergan were genuine or if it was just helping to make Valeant's bid easier, Bloomberg News reported.