Judge seems OK with Ackman’s $290M Allergan settlement

Bill Ackman and Valeant Pharmaceuticals can breathe a sigh of relief — for now.

A federal judge in California indicated Tuesday that he would grant preliminary approval to a $290 million settlement Ackman’s Pershing Square and Valeant reached with shareholders of Botox-maker Allergan.

“The Court has vacated the trial date and indicated its preliminary approval of the settlement subject to submission of final papers and associated hearings,” Valeant said in a statement.

Allergan shareholders sued Pershing Square and Valeant in 2014, claiming they were duped as the two traded on inside information while snatching up Allergan shares in advance of making their failed hostile bid for the Botox maker that year.

The case was set to go to trial in a few weeks.

The judge added that he did not want the Securities and Exchange Commission to be bound by the settlement, according to a Bloomberg report.

Reps from Pershing Square declined to comment.