Pain Now Or Later? Thermo Fisher Tastes Earnout Bitters

Law360, New York (July 9, 2013, 4:54 PM EDT) -- Earnouts are a nice idea, bridging the gap between what sellers think their company is worth and what buyers are willing to pay for unproven assets. But they often just swap upfront spats for infighting later on, as Thermo Fisher Scientific Inc. is finding out now.

The lab and medical device supplier was sued last week by a shareholder of NovaWave Technologies Inc., a maker of greenhouse gas sensors that Thermo Fisher acquired in 2010. The deal included up to $5 million in contingency payments if...
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