A new class action lawsuit is doing what some had anticipated government regulators would do: charging that Bill Ackman, his hedge fund, Pershing Square Capital Management, and Valeant Pharmaceuticals Intl Inc, engaged in insider trading. The suit, brought by investors who sold stock between February and April, a period when Ackman’s Pershing Square Capital Management had knowledge of a pending acquisition of Allergan Inc. and discreetly purchased nearly 10% of Allergan’s stock. Part of Ackman’s strategy was to use high yielding derivatives contracts. These contracts to move the most in value over short periods of time on strongly positive news. Ackman…
Ackman, Valeant Target Of Lawsuit; Will Allergan’s Pyott Join Plaintiffs?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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