For the first time ever, a Delaware court has found that a target company has experienced a “material adverse effect” sufficient to allow the purchaser to terminate the purchase agreement. On October 1, 2018, in Akorn, Inc. v. Fresenius Kabi AG, the Delaware Court of Chancery found that regulatory compliance issues, a drop in business performance, and other factors constituted, or could be reasonably expected to result in, an MAE. To learn more, click here.
This post was written by George Thomas.
