Ackman faults Valeant's reaction to short-seller allegations

Fri Oct 30, 2015 10:02am EDT
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BOSTON Oct 30 (Reuters) - Hedge fund mogul William Ackman told his investors on Friday that he was confident in his bet on Valeant Pharmaceuticals, but faulted the company for a weak response to a short-seller's allegations it is improperly inflating revenues.

He said during a teleconference that Valeant had made a "meaningful mistake" of underinvesting in its public relations, offering only a curt denial of short-seller Citron's claims this month it used phantom sales to boost its bottom line.

Ackman's Pershing Square Capital Management hedge fund is one of Valeant's top investors, and has taken a big hit due to Valeant's falling share price. (Reporting by Svea Herbst-Bayliss; Editing by Richard Valdmanis)