Healthcare firm Abbott has lodged a complaint to terminate the $5.8bn deal to acquire diagnostics device and services provider Alere.
The complaint has been filed in the Delaware Court of Chancery, based on the significant loss in Alere's value following the merger deal.
Earlier this year, Abbott signed an agreement to acquire Alere that provides easy-to-use and cost-effective tests for use in the areas of infectious disease, molecular, cardiometabolic and toxicology.
After signing the deal in January, Alere faced a series of damaging business developments such as government rejecting the billing privileges of a substantial Alere division and permanent recall of an important product platform.
Other damages include multiple new government subpoenas such as two new criminal subpoenas and five-month delay in filing its 10K coupled with admissions of internal control failures requiring restatement of its 2013-2015 financials.
Abbott external communications divisional vice president Scott Stoffel said: "Alere is no longer the company Abbott agreed to buy 10 months ago.
"These numerous negative developments are unprecedented and are not isolated incidents brought on by chance.
“We have attempted to secure details and information to assess these issues for months, and Alere has blocked every attempt.”
In August, Alere sued Abbott claiming that the medical-device manufacturer failed to secure US antitrust clearance for their proposed $5.8bn merger deal.
The complaint seeks to compel Abbott to meet its obligations under the terms of the merger deal to take all actions required to promptly secure all required anti-trust approvals.