Corporate > AG Deal Diary > Delaware Court Uses Rarely Enforced Escape Clause to Allow Merger Termination
11 Oct '18

Akin Gump has issued an alert on the Delaware Court of Chancery’s decision that a buyer has the contractual right to terminate a merger based on a sudden and sustained decline in the seller’s business. The Delaware Court has made clear the decision was driven by facts, not legal innovation and that the decision provides guidance to both litigators and dealmakers for negotiation and interpretation of so-called “material adverse effect” clauses.

Click here to read the full alert.