Investors Sue AbbVie Over Abandoned Shire Buyout

Source: Wall Street Journal

Aug 09, 2016

Hedge fund Elliott Management is suing AbbVie over its failed $54 billion buyout of Shire, saying the drugmaker misled investors.

Elliott alleges that AbbVie management focused on “strategically compelling” reasons for the deal and downplayed the tax savings -- then walked away when the Obama administration imposed new rules that made it harder for companies to use mergers to redomicile out of the U.S.

The abandoned deal left Shire investors with large stock losses. Elliott is now seeking punitive damages.

Read the WSJ article