Akorn Must Face Stock Drop Suits Tied to Failed Fresenius Merger

Akorn Inc. must face claims from investment funds and their advisers who say they lost money when the company’s stock fell after compliance problems derailed a planned merger with Fresenius, an Illinois federal judge said.

The drugmaker allegedly misled investors about its compliance with Food and Drug Administration regulations, which a whistleblower revealed to Fresenius before the completion of the merger. The investors sufficiently alleged actionable material misstatements and omissions, the U.S. District Court for the Northern District of Illinois said Wednesday.

The investors argued that Akorn left material information about its regulatory noncompliance out of several Securities and Exchange ...