Do We Have a Deal? A Groundbreaking Court Decision May Impact MAE IssuesOn March 13, 2019 by Schnader in Mergers and Acquisitions
Megan E. Harmon published a client alert, “Do We Have a Deal? A Groundbreaking Court Decision May Impact MAE Issues.” In Akorn, Inc. v. Fresenius Kabi AG, the Delaware Chancery Court, affirmed by the Delaware Supreme Court, found for the first time that there was a material adverse effect justifying the buyer to terminate the merger agreement. The alert states:
“Businesses pursuing a merger or acquisition transaction may want to consider the important issues of material adverse effect (MAE) presented in the recent decision of Akorn, Inc. v. Fresenius Kabi AG. Parties to a deal should take into account how the questions raised by this case could potentially affect the way transactions are structured.”
Harmon is co-chair of Schnader’s Mergers and Acquisitions Practice Group.