BioMerieux Must Pay Fees to CEO Defending Fraud Suit Over Merger

BioMerieux Inc. must advance expenses to the former chief executive officer of Specific Diagnostics LLC, a company it acquired in May 2022, which the executive incurred while defending claims of committing fraud by failing to disclose his company was being investigated before the merger.

Paul Rhodes has a right to recover his expenses under Specific’s bylaws and the company’s agreement to indemnify its directors and executive officers, Magistrate in Chancery Bonnie W. David said.

• Rhodes can’t recover costs incurred in a separate suit he filed seeking a declaration that he didn’t commit fraud, David said
• Carve-outs in the bylaws ...