Allergan loses bid to block Ackman from voting on takeover Botox maker Allergan Inc. lost its bid to prohibit activist investor Bill Ackman's hedge fund from voting in a shareholder election that could decide a hotly contested takeover effort. Allergan had accused Ackman's Pershing Square Capital Management of insider trading in buying nearly 10% of the Irvine company's shares earlier this year without disclosing that it was partnering with Canadian company Valeant Pharmaceuticals International Inc. to try to buy Allergan. Allergan shareholders are scheduled to vote Dec. 18 on a proposal to remove a majority of its directors and replace them with board members who would likely agree to sell the company to Valeant. U.S. District Judge David O. Carter said Tuesday that it was too early in the legal process to bar Ackman's fund from voting. "Although the court has determined that plaintiffs have raised serious questions ... no jury has made a final determination as to whether substantial steps were taken toward a tender offer by the time [Pershing Square] began trading on confidential information," Carter said in his ruling. The judge ordered voting materials to include Allergan's allegations that Pershing Square had committed insider trading, but stopped short of blocking the fund from voting its shares. At issue is a battle over the Irvine company and its coveted collection of medications and devices. Allergan's board has rejected buyout offers from Valeant, the most recent a combination of cash and stock now worth more than $54 billion. Allergan said it intends to appeal Carter's ruling. "It is important that the rights of the company's stockholders not be infringed by the actions of one hedge fund that significantly profited, to the detriment of other stockholders and the market, by trading in Allergan securities while in possession of material non-public information," Allergan said. Pershing Square said it was pleased with the judge's ruling and that it intends to make the disclosures he required. "Pershing Square hopes that the court's decision puts an end to the expensive and distracting litigation brought by Allergan and looks forward to the opportunity for shareholders to express their views about the Allergan board of directors, the Valeant proposal and other governance matters," Pershing Square said. Allergan shares rose $1.67, or 1%, to $194.81 in midday trading.