Kahn Swick & Foti, LLC, the former attorney general of Louisiana’s law firm, has opened an investigation into the proposed sale of Avadel Pharmaceuticals to Alkermes. The probe focuses on whether the price and negotiation process for the deal are adequate, raising questions about the fairness of the transaction to Avadel shareholders.
The acquisition terms, as disclosed in the press release, provide Avadel shareholders with $18.50 in cash per share and a non‑transferable contingent value right for an additional $1.50 per share, contingent on FDA approval of LUMRYZ for idiopathic hypersomnia by the end of 2028. The investigation could influence the perceived value of the deal and the timeline for closing, which is slated for the first quarter of 2026.
Alkermes’ board has already approved the transaction, but the regulatory scrutiny may prompt a review of the deal’s structure and could affect shareholder confidence and the final valuation. The investigation underscores the importance of compliance and transparency in large cross‑border acquisitions within the biopharmaceutical sector.
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