Big Pharma Deal May Be Pushing The Envelope On Insider Trading

The New York Times, in its Dealbook section, looks at a controversial takeover offer for a major pharmaceutical company. The CEO of Valeant Pharmaceuticals, which is pursuing the takeover, teamed up in advance with a hedge fund manager who bought shares worth over $1 billion in advance of the offer. Now the target company, Allergan, has sued Valeant’s CEO and the manager of the hedge fund, Pershing Square Capital Management.