Elliott Waives BioMarin Board Deal, Quashing Lawsuit

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Elliott Waives BioMarin Board Deal
BRAZIL - 2022/11/18: In this photo illustration, the BioMarin Pharmaceutical logo is displayed on a smartphone screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

In a dramatic shift in corporate strategy, Elliott Investment Management LP has relinquished an earlier pact with BioMarin Pharmaceutical Inc., nullifying an ongoing lawsuit and sidestepping a potential board upheaval. The initial agreement had granted the activist investor three additional seats on the board of the biopharmaceutical titan, sparking a legal battle that has now fizzled out in Delaware’s courts.

Elliott Waives BioMarin Board Deal : Courtroom Conclusions

The legal drama reached a turning point late Tuesday when Vice Chancellor J. Travis Laster of the Delaware Chancery Court signed a six-page order. This order declared the lawsuit moot, following a mutual stipulation to dismiss by the involved parties. The now-dismissed class action was initially launched on April 4 by BioMarin shareholder Aaron Jones.

Elliott Waives BioMarin Board Deal : The Seeds of Dispute

The dispute originated when BioMarin’s board agreed to a cooperation deal with Elliott in December, apparently to dodge a looming proxy fight. This deal, now defunct, would have expanded BioMarin’s board to include three Elliott-nominated directors—Mark Enyedy, Athena Countouriotis, and Barbara Bodem—in its 2024 electoral slate. In return, Elliott had promised to support the existing board and refrain from disparaging remarks under a standstill agreement.