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Chancery Saves Ligand From $3.75B Loss On Bond Bungle

Law360 (May 24, 2019, 7:30 PM EDT) -- The Delaware Chancery Court dismissed an investor suit Friday seeking to enforce a botched formula in a bond indenture from Ligand Pharmaceuticals Inc. that would have given bond traders a $4 billion conversion right for $250 million in notes.

Vice Chancellor J. Travis Laster said the terms of the indenture authorized Ligand to conform the indenture’s description of the notes to the details in the notes’ offering memorandum, meaning it has a right to correct the formula and annul the billion-dollar golden ticket bond traders had hoped to cash in.

The traders had sued Ligand to stop it from enacting the...

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