A CNBC report citing sources has revealed that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Bill Ackman‘s Pershing Square has approached the Securities Exchange Commission (SEC) against Allergan, Inc. (NYSE:AGN) to make complaints that the latter is making false and misleading claims about the company in relation to its Bausch & Lomb business.

Valeant also alleged in its complaint that such statements are aimed to disrupt the share prices of the company. Furthermore, the report highlights that Robert Khuzami, who is a former enforcement Director of the SEC and now working with Valeant Pharmaceuticals Intl Inc (NYSE:VRX), is leading the efforts on behalf of the company and Pershing Square.

valeant pharmaceuticals

Alongside approaching the SEC, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has also taken up the matter with regulators in Quebec that is Autorite Des Marches Financiers, to raise their concerns about the false statements issued by Allergan, Inc. (NYSE:AGN). It is noteworthy that if Valeant goes ahead with the proposed acquisition of Allergan, Inc. (NYSE:AGN), it will become one of the biggest companies, not just in Quebec, but also in the whole of Canada.

Some of the highlights of the latest statement from Allergan, which had forced Valeant to knock the SEC doors, was released on Friday, stating:

“Valeant continues to cherry pick data that fails to provide analysts and investors with the financial information necessary to truly evaluate Bausch & Lomb’s performance. Valeant’s latest attempt to hide the ball appears to involve focusing investors on growth from medical device products rather than on pharmaceutical products that continue to stagnate or decline.”

Meanwhile, another concerning event that added to the distress of Valeant is a report from the Wall Street Journal that highlighted the exit of the mutual fund giant, Capital Research and Management Co., from Allergan, Inc. (NYSE:AGN). The report outlined that it is believed Allergan’s CEO David Pyott made certain claims to Capital Research, on the basis of which the entity sold its holdings. While Capital Research’s exit was aimed to send signals of little growth from the hostile takeover, it shows strong defending approach of Allergan against Valeant.

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