Abbott has filed a complaint to terminate its proposed acquisition of Alere due to Alere's significant loss in value since the January merger agreement.
Alere has gone through suffered a series of damaging developments, such as a permanent recall of a product platform and several government and criminal subpoenas.
"Alere is no longer the company Abbott agreed to buy 10 months ago," Scott Stoffel, divisional vice president of external communications for Abbott, said. "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. This damage to Alere's business can only be the result of a systemic failure of internal controls, which combined with the lack of transparency, led us to filing this complaint."
Under terms of the original merger agreement, Abbott may terminate the deal if adverse events change Alere's long-term financial prospects.