Shares of Akorn Inc (NASDAQ:AKRX) slipped double digits after a judge ruled that German health care company Fresenius Medical Care (NYSE:FMS) had sufficient cause to end its $4.8 billion bid for the company.
Akorn shares plummeted about 28% to $4.05 in Monday afternoon trading while Fresenius shares were down nearly 9% to $35.73.
After the ink on the agreement had dried, an independent investigation revealed that generic drugmaker Akorn had a history of fraudulent product data submissions.
Fresenius, a provider of kidney dialysis care, sought to end the agreement.
Judge Travis Laster found in October that the termination of the merger was valid, citing Akorn’s compliance issues.
The judge also found that Akorn had failed to continue operating as normal after inking the deal.
Laster wrote that Akorn's "magnitude of inaccuracies would reasonably be expected to result in a material adverse effect," as per a Reuters report.
Akorn stood its ground and appealed the decision, claiming that it was a breach of a binding merger agreement and that Fresenius was suffering from buyer’s remorse.
The Delaware Supreme Court was not swayed, issuing an order that upheld Judge Laster’s findings, as per a Bloomberg report.
Contact Lenore Fedow at [email protected]