Elliott, BioMarin Sued in Bid for Clarity on Investor Pacts (1)

An investor is challenging the cooperation agreement between BioMarin Pharmaceutical Inc. and Elliott Investment Management LP, touting the lawsuit as a chance to clear up uncertainty created by a recent landmark ruling on shareholder pacts.

The suit filed Thursday targets parts of the accord—reached in December to defuse the activist hedge fund’s bid for directorships—that cap the board’s size for a year and pledge support for Elliott’s candidates. The provisions are indistinguishable from clauses struck down in a February decision involving investment bank Moelis & Co., according to the proposed class action filed in Delaware’s Chancery Court.

The judge who ...