NEW YORK (Legal Newsline) – A Florida corporation and a New Jersey corporation allege a West Virginia corporation failed to comply with a $27.1 million asset purchase agreement.
Spear Pharmaceuticals Inc. and Spear Dermatology Products Inc. filed a complaint on Nov. 30 in the U.S. District Court for the Southern District of New York against Mylan Pharmaceuticals Inc. alleging breach of contract.
According to the complaint, on May 10, 2017, a large portion of Spear's assets was purchased by Mylan pursuant to an asset purchase agreement (APA).
"Mylan deposited $27.1 million into an escrow fund at the closing to be held in an account to satisfy any indemnity obligations, and otherwise to be paid to Spear 15 months following the closing of the transaction," the suit states. "Two days prior to the release of escrow property to Spear, and with no prior notice to Spear, Mylan sent Spear an indemnification demand, thereby blocking the release of the escrow funds to Spear."
The plaintiffs hold Mylan Pharmaceuticals Inc. responsible because the defendant allegedly failed to comply with the agreement by improperly seeking indemnification.
The plaintiffs seek the amount of the escrow property and totaling $27.1 million plus the interest that has accrued on the escrow property since closing; order Mylan to comply with the terms of the APA; attorneys' fees, costs, and disbursements in this action. They are represented by Steven Lieberman, Daniel McCallum and Nechama Potasnick of Rothwell, Figg, Ernst & Manbeck PC in Washington, D.C.
U.S. District Court for the Southern District of New York case number 1:18-cv-11156-AJN