The company logo of Valeant Pharmaceuticals International Inc is seen at its headquarters in Laval, Quebec May 19, 2015.

The company logo of Valeant Pharmaceuticals International Inc is seen at its headquarters in Laval, Quebec May 19, 2015. (Reuters)

Ackman Blames Valeant's Reaction to Short-Seller Claims

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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.

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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)