News & Media
Entwistle & Cappucci LLP Appointed Co-Lead Counsel in Allergan, Inc. Proxy Violation Derivatives Litigation
October 30, 2017
NEW YORK, NY, October 26, 2017 – Entwistle & Cappucci LLP (“Entwistle & Cappucci”) today announced that
the firm was appointed co-lead counsel in a consolidated class action alleging that Valeant Pharmaceuticals
International, Inc. (“Valeant”) and Pershing Square Capital Management, L.P. (“Pershing Square”) engaged in an
illegal insider trading and front-running scheme ahead of Valeant’s attempted hostile takeover of Allergan, Inc.
(“Allergan”), in violation of the Securities Exchange Act of 1934 (“Exchange Act”). The case is pending in the
United States District Court for the Central District of California.
U.S. District Judge David O. Carter appointed the firm as lead counsel, along with Susman Godfrey L.L.P.
Entwistle Cappucci Senior Partner Vincent R. Cappucci stated “the firm very much appreciates the court’s
appointment to serve as co-lead counsel and we are devoting significant resources to achieving a successful recovery
for the class.”
The appointment of co-lead counsel is the latest development in this ongoing complex securities litigation. On June
30, 2017, the firms filed a securities class action complaint on behalf of persons or entities that traded certain
derivative securities of Allergan (NYSE: AGN) during the period February 25, 2014 through April 21, 2014,
inclusive (the “Class Period”), and who thereby sustained damages (the “Class”).
The class action asserts claims under Sections 14(e), 20A and 20(a) of the Exchange Act arising from the 2014
attempted acquisition of Allergan by Valeant and its affiliates. The complaint alleges that Valeant provided
Pershing Square with information regarding Valeant’s plans to launch a hostile takeover and tender offer for
Allergan, and in exchange Pershing Square agreed to secretly acquire nearly 10% of Allergan’s stock and commit
those shares to support Valeant’s bid. The complaint further alleges that, as a result of receiving material nonpublic
information regarding Valeant’s plans, Pershing Square obtained a risk-free trading opportunity to front-run
Valeant’s bid and accumulate a multi-billion dollar stake in Allergan before the bid became public. As a direct
result of the defendants’ alleged scheme, Class members that sold Allergan call options, purchased Allergan put
options and/or sold Allergan equity forward contracts during the Class Period did so at prices that did not reflect the
material nonpublic information known to Defendants. Lead Plaintiff seeks an award of damages and prejudgment
interest on behalf of the Class.
The derivatives class is represented by firm partners Andrew J. Entwistle, Vincent R. Cappucci, Arthur V. Nealon
and Robert N. Cappucci of Entwistle & Cappucci.
The case is In re Allergan Inc. Proxy Violation Derivatives Litigation, Case No. 2:17-cv- 04776, U.S. District Court,
Central District of California.
About Entwistle & Cappucci LLP
Entwistle & Cappucci is a national law firm providing exceptional legal representation to clients globally in the most
complex and challenging legal matters. Our practice encompasses all areas of litigation including securities,
antitrust, corporate transactions, general corporate and commercial, creditor’s rights and bankruptcy, corporate
governance and fiduciary duty, government affairs, insurance, investigations and white collar defense. Our clients
include public and private corporations, major hedge funds, public pension funds, governmental entities, leading institutional investors, domestic and foreign financial services companies, emerging business enterprises and individual entrepreneurs.