Allergan PLC will pay Teva Pharmaceutical Industries Ltd. $700 million to dismiss a dispute between the two companies, according to a Thursday financial filing. The payment will result in an one-time pre-tax charge of $465 million in Allergan’s fourth quarter. The two companies have been involved in a working capital dispute, and Teva has previously suggested adjustments of $1.4 billion and $1.5 billion, according to an Allergan financial filing from November. Once the two companies dismiss their working capital dispute arbitration, they will release “actual or potential claims” under a July 2015 agreement, according to the filing. Teva shares rose 0.9% in premarket trade and Allergan shares rose 0.3%. Teva shares have surged 45.6% over the last three months and Allergan shares have declined 2.3%, compared with a 9.5% rise in the S&P 500 and a 11.6% rise in the Dow Jones Industrial Average .
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