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Valeant (VRX) and Bill Ackman's Pershing Square Ltd. have entered into an agreement to split the costs of a long-fought battle with Allergan (AGN) - Get Free Report shareholders over a lawsuit announced in 2015. 

The two parties will split litigation fees 50-50 up to $10 million, according to a filing with the Securities and Exchange Commission. This agreement is terminated on Nov. 1, 2017, if a settlement with Allergan has not been reached before then. Under the terms of the lawsuit settlement, Valeant will pay 60% of the costs of any future settlement with Allergan, while Pershing Square is responsible for the rest. 

Valeant launched a hostile bid for Allergan back in 2014. Just before the embattled pharmaceutical company did so, though, Ackman and Pershing Square took on a 10% stake in Allergan, promising to pledge those shares to Valeant. 

Botox maker Allergan charged in a still-pending 2014 lawsuit that rival Valeant and Pershing Square violated securities laws by relying on insider information when they crafted a $51 billion takeover bid for Allergan.

Valeant and Pershing Square said the complaint was intended to prevent them from calling a special meeting of Allergan shareholders to vote on their board nominees.

Valeant was trading at $15.07 per share ahead of the market's open Tuesday, up slightly from the company's close of $14.97 Monday. Valeant has lost 83% of its value compared to its price one year ago.

Allergan, meanwhile, has yet to move since market's close Monday. The company closed at $246.76 after announcing the acquisition of Zeltiq Aesthetics (ZLTQ) , the maker of CoolSculpting for $2.5 billion. 

Valeant's problems began in March of last year, when the company pinned the blame on its former CFO and former controller, Howard Schiller, for misstatements of earnings. The drugmaker has since been scrutinized for its alleged accounting problems and steep price hikes on drugs it acquired during years of acquisitions fueled by debt.

Meanwhile, problems with its relationship with mail-order pharmacy Philidor Rx Services and its customer, R&O Pharmacy, as well as its legal but questionable accounting gamesmanship, caused Valeant's valuation to plunge.

In hopes of turning around its stock's valuation, Valeant has been divesting assets. In January of last year, Valeant began a string of divestitures by selling its Valeant Group Cosmederme to Intega Skin Sciences, a subsidiary of Knight Therapeutics and Bloom Burton for undisclosed terms. And just last month, the company sold several skincare assets to L'Oreal (OR) - Get Free Report for $1.3 billion in cash.

Valeant reports earnings on Feb. 28. The company will appear at two healthcare conferences as well—at RBC Capital Markets' Healthcare Conference on Feb. 23, and at Barclays Global Healthcare Conference on March 15. 

Allergan is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio

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