Abbott Files Lawsuit To Terminate Its Proposed Acquisition Of Alere

(RTTNews) - Abbott Laboratories (ABT) said it has filed a lawsuit in the Delaware Court of Chancery to terminate its proposed acquisition of Alere Inc. (ALR) based on the substantial loss in Alere's value following the merger agreement.

Responding to Abbott's lawsuit, Alere said that the lawsuit is entirely without merit. As Abbott well knows, none of the issues it has raised provides it with any grounds to avoid closing the merger.

Abbott said that in the 10 months following the January 30, 2016, signing of the $5.8 billion agreement, Alere has suffered a series of damaging business developments, including the government eliminating the billing privileges of a substantial Alere division, the permanent recall of an important product platform, multiple new government subpoenas, including two new criminal subpoenas, and a five-month delay in filing its 10K coupled with admissions of internal control failures requiring restatement of its 2013-2015 financials.

As per terms of the merger agreement, Abbott may terminate the transaction if adverse events materially change Alere's long-term prospects.

Alere noted that it has fully complied with its contractual obligations under the merger agreement and is highly confident that the merger will be completed. Alere will take all actions necessary to protect its shareholders and to compel Abbott to complete the transaction in accordance with its terms.