Allergan plc (NYSE:AGN) shareholders got a respite in case against William Ackman, his hedge fund, and Valeant Pharmaceuticals International Intl Inc (BMV:VRXN) recently when federal Judge David O. Carter rejected two major legal arguments from the side of Ackman. In another settlement, Allergan lost a patent battle with Sandoz Inc. over the Combigan eye drug.
There is a strong possibility that an insider trading will take place and could lead to a settlement between the Allergan shareholders and the activist investor. Reports indicate that the plaintiffs, Mr. Ackman and the other people involved in the matter have been regularly in contact with the mediator and there is a strong possibility that they would agree to any deal in the coming days.
However, nothing is assured yet and no one knows the circumstances under which the deal would be made. Previously Allergan shareholders alleged that Pershing Square, Valeant, and Mr. Ackman disturbed their takeover bid for the company in 2014 by carrying out an improper trading ahead of the bid.
Even though the judge did say that he could change his mind, the current ruling can increase the legal perils for Mr. Ackman and his team and they may have to pay major damages after the trial is conducted in February next year.
Sandoz Wins Patent Battle Against Allergan
It was a big win for Sandoz as it won the patent battle against the rival version of Combigan eye drug of Allergan a few days ago. However, officials of Allergan said that they will be filing a petition for a rehearing for the case. The U.S. District Court for the Eastern District of Texas earlier gave the decision that Sandoz did not infringe the two patents from Allergan and approved the third patent favoring the side of Novartis AG who was representing Sandoz.
Recently the U.S. Court of Appeals for the Federal Circuit confirmed this decision of the U.S. District Court. Allergan and Sandoz are also fighting litigation in New Jersey over another patent of Combigan.