Valeant Pharmaceuticals Intl Inc (VRX), Bill Ackman on Radars Over Allergan, Inc. (AGN) Insider Trading Scandal

Billionaire investor and hedge fund Manager Bill Ackman of Pershing Square has been in the news recently for all the wrong reasons. Allergan, Inc. (NYSE:AGN) has filed a lawsuit against him accusing him of insider trading. Andrew Ross Sorkin and CNBC’s Squawk Box team discussed Sorkin’s own column in the Monday edition of the New York Times. Sorkin had written that Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s deal with Ackman may be too clever to be legal.

Bill Ackman in crowd

‘‘How is it possible that the CEO of Valeant calls you, you go buy shares, and somehow that’s all legit?’’ asked Sorkin. Joe Kernen was quite voluble in his agreement. “It is legal technically. However, my point is that it stinks,” he noted. Becky Quick pointed out that in his defense, Ackman and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) had a whole array of lawyers looking into the legitimacy of the transaction. Robert S. Khuzami, former head of enforcement at the SEC, is one of the most notable among them.

Sorkin stated that the SEC may have to change the rules in light of the recent developments in the Valeant Pharmaceuticals Intl Inc (NYSE:VRX) – Allergan, Inc. (NYSE:AGN) case. Quick seemed to be in agreement and felt that this might set a bad trend with others following suit. This might be easier said than done as it was unclear if the SEC had the authority to change the law and they ‘might need a Congressman to enact the law to make this work’, said Sorkin.

The lawsuit in question was filed by Botox manufacturer Allergan, Inc. (NYSE:AGN) claiming that Bill Ackman was allegedly in cahoots with another pharmaceutical major Valeant Pharmaceuticals Intl Inc (NYSE:VRX) involving a hostile takeover plan of the former. It is also important to point out the fact that Ackman’s Pershing Square is Allergan’s largest investor.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!