Court Revives Health Sciences Cos. Merger Dispute

Law360, New York (July 19, 2007, 12:00 AM EDT) -- An appellate court ruled Tuesday on a contentious earn-out provision in a 2002 merger agreement between two health sciences companies that manufacture DHA, an omega-3 fatty acid, vacating the lower court’s ruling and sending the case back to the district court for trial.

Former shareholders of OmegaTech Inc. petitioned the U.S. Court of Appeals for the Fourth Circuit to overturn the district court’s ruling that Martek Biosciences Corp. did not have to pay out $10 million in stock to the holders. The merger agreement stipulated that...
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