MAE is MIA No Longer: Delaware Court Upholds Use of "Material...


In Akorn, Inc. v. Fresenius Kabi AG , the Delaware Chancery Court held that Fresenius, a German pharmaceutical company, was justified in invoking a "material adverse event" clause to terminate its $4.8 billion merger agreement with American generics manufacturer Akorn, Inc. Although MAE clauses are common in large transactions, Akorn marks the first time that the Chancery Court has upheld a buyer's use of such a clause to back out of a merger agreement.



from Biotech News