Chancery Lets Fresenius Ditch $4.3B Akorn Deal

Law360 (October 1, 2018, 3:38 PM EDT) -- Pharmaceutical company Fresenius Kabi AG can walk away from its proposed $4.3 billion acquisition of Akorn Inc., a Delaware Chancery judge determined Monday, saying regulatory compliance issues at Akorn triggered the buyer's rights to terminate the merger.

In a 247-page opinion, Vice Chancellor J. Travis Laster said Akorn's casual compliance programs with federal regulators, including the U.S. Food and Drug Administration, allowed Fresenius to kill the acquisition because the merger agreement allowed it to walk away if Akorn was not truthful in deal representations.

Shortly after the parties signed the deal documents, Akorn's financials took a nosedive and the company was...

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