Shearman And Sterling

Healthcare, Medical Monitor

August 11, 2021

M&A Watch: Back to the Future: Delaware Court Again Rejects Buyer’s Claim of an MAE

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M&A WATCH: Back to the Future: Delaware Court Again Rejects Buyer’s Claim of an MAE

On July 9, 2021, Vice Chancellor Slights of the Delaware Court of Chancery, in Bardy Diagnostics, Inc. v Hill-Rom, Inc. (Del. Ch. July 9, 2021), ordered specific performance to compel Hill-Rom, Inc. (“Hillrom”), a publicly held, global medical technology company, to close the acquisition of Bardy Diagnostics, Inc. (Bardy”), a medical device startup, upon finding that Hillrom failed to prove that a significant decrease in the Medicare reimbursement rate for Bardy’s sole product offering constituted a Material Adverse Effect (“MAE”), as defined in the merger agreement.

Read the full memo, “Back to the Future: Delaware Court Again Rejects Buyer’s Claim of an MAE.”

Authors and Contributors

George Casey

Partner

Mergers & Acquisitions

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+1 212 848 8787

New York

Scott Petepiece

Partner

Mergers & Acquisitions

+1 212 848 8576

+1 212 848 8576

New York

Alan S. Goudiss

Partner

Litigation

+1 212 848 4906

+1 212 848 4906

New York

Daniel Litowitz

Partner

Mergers & Acquisitions

+1 212 848 7784

+1 212 848 7784

New York

Lara Aryani

Partner

Mergers & Acquisitions

+1 212 848 7556

+1 212 848 7556

New York

K. Mallory Brennan

Partner

Litigation

+1 713 354 4847

+1 713 354 4847

+1 212 848 7657

+1 212 848 7657

Houston

Grace Jamgochian

Partner

Mergers & Acquisitions

+1 212 848 8393

+1 212 848 8393

New York

Derrick Lott

Partner

Mergers & Acquisitions

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+1 212 848 7421

New York

Roger Morscheiser

Partner

Mergers & Acquisitions

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+1 212 848 7422

New York