Valeant Pharmaceuticals and Pershing Square Holdings agreed to pay a combined $290 million to settle claims the two were engaged in insider trading in a failed 2014 bid to takeover Allergan, the Irish Times reports.
Here's what you should know:
1. Contingent on the approval of a U.S. state judge, Pershing Square will pay Allergan's investors $193.75 million and Valeant will pay the remaining $96.25 million.
2. Pershing Square Holdings manager Bill Ackman said the companies decided to settle the lawsuit, "in the best interest of our investors."
3. Allergan investors brought the suit against Valeant and Pershing Square Holdings after discovering Mr. Ackman had bought a large portion of Allergan's shares knowing Valeant was submitting a bid to acquire Allergan.
4. Mr. Ackman made more than $2 billion on his initial investment in Allergan. He followed up that investment with subsequent investments, eventually losing $4.2 billion.