Shareholder rights law firm Robbins Arroyo LLP reminds investors that a shareholder of Akorn, Inc. (NasdaqGS: AKRX) has filed a shareholder lawsuit against the company's officers and directors for breaches of fiduciary duty from 2014 through the present. Akorn is a specialty generic pharmaceutical company.

View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/akorn-inc-dec-2018/

Akorn's FDA Violations Result in Termination of Acquisition And Remediation Costs of$900 Million

According to the complaint, on April 24, 2017, Fresenius SE Co. KGaA ("Fresenius") agreed to acquire Akorn in a deal valued at $4.3 billion. While conducting due diligence prior to the merger, Fresenius received three letters from whistleblowers alleging that Akorn's research and development facilities were significantly flawed and incomplete. When Akorn sued Fresenius to close the deal, the court ruled in favor of Fresenius, finding that Akorn "did not have a well-functioning quality system and lacked a meaningful culture of compliance." On December 7, 2018, Delaware's Supreme Court upheld the milestone finding, noting that Fresenius' termination of the deal was justified based on Akorn's post-signing financial decline as well as intentional misconduct and regulatory violations, which include fabricated data in reports to the FDA. Since the truth was revealed, Akorn's market capitalization has plunged from $4.3 billion when the merger was executed to only $720 million, and the company will need to pay an estimated $900 million to remediate its serious regulatory issues.

Akorn Shareholders Have Legal Options

Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.

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