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MAEjor Ruling: Delaware Court of Chancery Finds Target Suffers Material Adverse Effect and Acquirer Could Back Out of Transaction

Cooley M&A

Fresenius Kabi AG , C.A. The court also found that Fresenius was justified in not closing the transaction before the end date because of the occurrence of an MAE. We can no longer give this advice. In its decision in Akorn, Inc. 2018-0300-JTL (Del. the adverse change constituted an MAE as defined in the merger agreement.

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Skadden Discusses Seventh Circuit Decision on Mootness Fees in Lawsuits Challenging Mergers

Reynolds Holding

1 mapped out one means by which a court may evaluate mootness fees paid to individual shareholders after the voluntary dismissal of an action challenging a public company merger. Instead, companies typically settle these suits by agreeing to additional “correcting” disclosures and paying plaintiffs’ counsel a modest fee. Akorn Inc.,

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Social Distancing From a (Supposed) Life Partner: Early Lessons From Deals Terminated and On the Rocks in the COVID-19 Era

Cooley M&A

Residential rental companies Front Yard Residential and Amherst Residential mutually agreed to terminate their planned $2.3 Acquisition agreements typically require the target company to operate in the ordinary course of business in all material respects and to refrain from taking certain specified actions between signing and closing.

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