Akorn Comments on Favorable Court Order
March 01 2019 - 5:17PM
Akorn, Inc. (Nasdaq: AKRX) announced today that the Delaware Court
of Chancery has denied a request by Fresenius Kabi AG to bring a
fraud claim against Akorn.
On February 20, Fresenius filed a proposed amended counterclaim
seeking to add a new claim for fraud to its existing request for
contract damages associated with the termination of the merger
agreement with Akorn last year. The Court of Chancery denied
Fresenius's motion on February 28, noting that "Fresenius did not
previously assert a claim for fraud, and the liability phase of the
case has concluded. Fresenius could have asserted a claim for fraud
at the outset of the case, or amended its pleadings during
discovery or before trial. The parties chose to litigate breach of
contract claims. It is too late now to introduce a new theory of
liability."
“Akorn believes Fresenius’s remaining request for contractual
damages is without merit, and we will continue to vigorously defend
ourselves against it,” President and CEO Douglas Boothe said.
“We are pleased that the Court has ruled in our favor on this
motion. This is an important development for us, as we focus
on our future and on strengthening the business to enhance
shareholder value.”
Cautionary Statement Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute "forward looking statements", including expectations
regarding financial performance, rebuilding shareholder value,
capital expenditures, growth, and other Akorn plans and strategy.
When used in this document, the words “will,” “expect,” “continue,"
“believe,” “estimate,” “intend,” “could,” “strives” and similar
expressions are generally intended to identify forward-looking
statements. These statements are made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. A number of important factors could cause actual results
of Akorn and its subsidiaries to differ materially from those
indicated by such forward-looking statements. These factors
include, but are not limited to: (i) the effect of the Delaware
court’s recent decision against Akorn on Akorn’s ability to retain
and hire key personnel, its ability to maintain relationships with
its customers, suppliers and others with whom it does business, or
its operating results and business generally, (ii) the risk that
ongoing or future litigation related to the court’s decision may
result in significant costs of defense, indemnification and/or
liability, (iii) the outcome of the investigation conducted by
Akorn with the assistance of outside consultants, into alleged
breaches of FDA data integrity requirements relating to product
development at Akorn and any actions taken by Akorn, third parties
or the FDA as a result of such investigations, (iv) the difficulty
of predicting the timing or outcome of product development efforts,
including FDA and other regulatory agency approvals and actions, if
any, (v) the timing and success of product launches, (vi)
difficulties or delays in manufacturing, and (vii) such other risks
and uncertainties outlined in the risk factors detailed in Part I,
Item 1A, “Risk Factors,” of Akorn’s Annual Report on Form 10-K and
other risk factors identified from time to time in our filings with
the SEC. Readers should carefully review these risk factors, and
should not place undue reliance on our forward-looking statements.
These forward-looking statements are based on information, plans
and estimates at the date of this report. Akorn undertakes no
obligation to update any forward-looking statements to reflect
changes in underlying assumptions or factors, new information,
future events or other changes.
About AkornAkorn, Inc. is a specialty generic
pharmaceutical company engaged in the development, manufacture and
marketing of multisource and branded pharmaceuticals. Akorn has
manufacturing facilities located in Decatur, Illinois; Somerset,
New Jersey; Amityville, New York; Hettlingen, Switzerland and
Paonta Sahib, India that manufacture ophthalmic, injectable and
specialty sterile and non-sterile pharmaceuticals. Additional
information is available on Akorn’s website at www.akorn.com.
Investors:(847)
279-6162Investor.relations@akorn.com
Media:Robert Stanislaro / Camilla
White212-850-5600Robert.Stanislaro@fticonsulting.com /
Camilla.White@fticonsulting.com
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