UPDATE 4-Valeant gives Pershing Square 1 board seat, adds 2 other directors

Wed Mar 9, 2016 6:54pm EST
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(Adds settlement with R&O Pharmacy)

March 9 (Reuters) - Embattled Valeant Pharmaceuticals International Inc said on Wednesday it has added a representative from shareholder Pershing Square Capital Management to its board of directors as well as two other new directors.

Pershing Square, run by activist investor Bill Ackman, bought a stake in Valeant last year when the drugmaker's shares were on the rise. They have fallen 68 percent since.

Valeant said later on Wednesday it had jointly ended litigation with R&O Pharmacy with both sides asking the court to dismiss case. R&O was not immediately available for comment on the settlement.

While Valeant did not disclose the terms of the settlement, it said the resolution included a payment by R&O to Valeant.

R&O sued Valeant in federal court in California on Oct. 6, after receiving a demand letter from Valeant for more than $69 million, money that R&O said it did not owe.

Valeant later countersued R&O, according to the Wall Street Journal.

Last fall, the company became the target of two U.S. state investigations into its drug pricing practices, and its relationship with Philidor RX Services, a pharmacy selling its dermatology products, came under scrutiny and was dissolved.   Continued...