Question 9 & 10
Why weren’t Ackman’s actions considered insider trading?
Pershing Square headed by Ackman didn’t held any
fiduciary relationship with Allergan. Insider is a term
describing a director or senior officer of a company, as
well as any person or entity that beneficially owns more
than 10% of a company's voting shares.
So, Ackman was not insider according to the definition.
They have cleverly maintained their position in the firm.
According to section 10b and section 14e of Securities and
Exchange Act 1934, Ackman and Valeant were not in
possession of non-public information about Allergan.