Allergan, Inc. (NYSE:AGN) is requesting that the U.S. District Court for the Central District of California expedite the case involving its accusations against Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Pershing Square Capital Management, as we first reported.
The Botox maker has accused them of violating federal securities laws and wants an “expedited schedule for discovery and a motion for a preliminary injunction” against Valeant and Pershing, according to a filing with the Securities and Exchange Commission.
— ValueWalk (@valuewalk) August 27, 2014
In addition, Allergan has tentatively scheduled a special shareholder meeting for Dec. 18.
Allergan seeks to bar Valeant, Pershing from exercising rights
Allergan is trying to keep Pershing Square and chief Bill Ackman, along with Valeant Pharmaceuticals, from exercising the rights they hold with their ownership of Allergan stock. The company alleges that they acquired Allergan shares unlawfully. If Allergan wins this injunction, it would keep Valeant, Pershing and Ackman from voting their shares at a special meeting. They have been pushing for Valeant to take over Allergan, which is battling the prospect of a hostile takeover. They also want to see a mostly new slate of directors at Allergan—one that may be more likely to take their side in the public spat.
Under the proposed expedited schedule, discovery would be finished in October, and a hearing on the injunction would be scheduled before the December special meeting.
Allergan schedules special meeting
This week Allergan also asked a judge to review Valeant’s and Pershing Square’s demands for a special meeting. Bloomberg reports that the Botox maker is seeking a Sept. 24 trial, alleging that they did not properly secure the support of enough shareholders to force a special meeting. At that meeting, investors would consider replacing most of Allergan’s directors.
Court filings show that Ackman and Valeant want Allergan to hold the special meeting nearly three months before the scheduled date. A spokesperson for Ackman’s firm and for Valeant says Allergan won’t get away with attempting to keep shareholders silent.
“We are confident that Allergan’s desperate attempts to delay or prevent a Special Meeting of Stockholders will not succeed and that the Special Meeting will be held not later than December 18,” said the spokesperson in a statement emailed to ValueWalk. “It is apparent that Allergan fears letting its stockholders have a voice, and we believe that its transparent efforts to prevent that will not stand.”