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Allergan to pay $15M for disclosure failures in wake of hostile takeover bid

Jaclyn Jaeger | January 19, 2017

Drug company Allergan, headquartered in Dublin, Ireland, has agreed to admit securities law violations and pay a $15 million penalty for disclosure failures in the wake of a hostile takeover bid, the Securities and Exchange Commission announced.

The SEC order finds that Allergan failed to disclose in a timely manner its negotiations with potentially friendlier merger partners in the months following a tender offer from Valeant Pharmaceuticals International and co-bidders in June 2014. Allergan publicly stated in a disclosure filing that the Valeant bid was inadequate and it was not engaging in negotiations that could result in a merger. It was required to amend the filing if a material change occurred. 

According to the SEC order, Allergan never publicly disclosed material negotiations it entered with a different company that would have...

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