Delaware High Court Backs Fresenius on Cancelling Planned Akorn Purchase
The Delaware Supreme Court smacked down Akorn in its attempt to block Fresenius from backing out of a planned merger.
In May, Akorn sued Fresenius in Delaware Chancery Court in an attempt to force the merger through. Fresnius claimed it pulled out of the planned $4.3 billion deal after discovering “blatant fraud” at high levels within the rival company.
Akorn accused Fresenius of using common errors as an excuse for its own buyer’s remorse. In October, the lower court sided with Fresenius, writing that while it took the buyer’s remorse claims seriously, the company fulfilled all its contractual obligations and was justified in having second thoughts.
The state’s supreme court affirmed the chancery court ruling, writing that the sudden downturn in Akorn’s generic drug business — before the deal was final — justified Fresenius’ reversal.