Updated on 30 January 2017
Allergan Plc, unit of botox maker will pay a US$15 million penalty and admit to wrong doing, after U.S. regulators on Tuesday accused the unit of failing to disclose 2014 merger talks with Actavis
Statement by U.S. Securities and Exchange Commission said, "The disclosure failures occurred in the months after the company received a tender offer from Valeant Pharmaceuticals International and co-bidder Pershing Square Capital Management, the hedge fund run by Bill Ackman. Allergan resisted a seven month-long hostile pursuit by Ackman and Valeant, and in November 2014 announced it had accepted a US$66 billion takeover bid from Actavis. Allergan previously told investors that Valeant's bid was inadequate and that it was not in merger talks.
SEC also added, "Allergan did have merger talks with an unnamed North Carolina company that it never disclosed. And also the unit did not provide timely disclosures about its talks with Actavis"
Mark Marmur, spokesman, Allergan Plc said, "the company's wholly owned subsidiary, Allergan Inc, agreed as part of the settlement not to engage in future violations and that the SEC had not accused the subsidiary of any intentional wrongdoing. SEC had not charged the parent company and that the filings at issue pre-dated Allergan's acquisition by Actavis"