Pershing Square announced that it has reached an agreement in principle, subject to court approval, to settle lawsuits concerning the attempted acquisition of Allergan (AGN) by Pershing Square Capital Management and Valeant Pharmaceuticals (VRX) in 2014, which were filed in the Central District of California. Pershing Square and Valeant have agreed to split the $290M total settlement such that Pershing Square will pay $193.75M and Valeant will pay $96.25M. Pershing says, “While Valeant had originally agreed to pay 60% of the cost of the settlement, Valeant and Pershing Square had different views on the desirability and timing of settling the case, which previously prevented settlement. On December 19, 2017, Pershing Square acquired control of the settlement of the litigation in exchange for agreeing to pay a greater percentage of the settlement amount.” Pershing Square CEO Bill Ackman adds, “”We continue to believe the case had absolutely no merit. We decided, however, that it was in the best interest of our investors to settle the case now instead of continuing to spend substantial time and resources pursuing the litigation.” Pershing Square had previously set aside $75M in legal reserves related to the case. The incremental cost of settling the litigation will reduce the company’s and the private funds’ performance and net asset value by 132 basis points.