Keryx Must Provide Books in Lawsuit Alleging Merger Side Deal

A Keryx Biopharmaceuticals Inc. stockholder who alleges the company gave $20 million more in merger benefits to a 39% owner than to common stockholders may inspect the company’s books and records, the Delaware Court of Chancery ruled Oct. 24.

Michael J. Donnelly’s evidence allows inferences that Baupost Group Securities LLC had a “control position” in Keryx that it used to improperly influence Keryx’s merger with Akebia Therapeutics, Inc., including convincing the board of directors, which had rejected the Akebia merger, to resume considering it, the court said.

Donnelly has a credible basis to assert Keryx breached its duty of loyalty, ...