Sun Pharmaceutical Gets Suit Over Post-Closing Payments Trimmed

Sun Pharmaceutical Industries Inc. convinced a New York federal court to throw out portions of a lawsuit alleging it failed to make certain post-closing payments as required under its contract to acquire Pharmalucence Inc.

Sun allegedly agreed to pay the former owners of Pharmalucence $70 million initially, followed by $30 million in milestone-based payments conditionally due after the closing. Pharmalucence was a provider of molecular imaging products for nuclear medicine practitioners.

But after the deal closed, Sun, with help from former owner Glenn Alto, lower the priority of products related to contract milestones when one of its India facilities was ...