A US court threw out a claim by India based OTA Yatra Online for damages against US-based software firm Ebix Inc over a failed merger.
Yatra last year pulled out of a $337 million merger agreement over alleged violation of agreement terms.
It sued Ebix for substantial damages for the contract breach but the Delaware court was unconvinced, ruling Yatra could not legally justify its claims.
Yatra claimed Ebix sought to renegotiate the merger terms but it was a tactic to renege on the previously agreed deal.
"Ebix made extra-contractual promises that it was willing to renegotiate the merger agreement’s terms when, in fact, it had no intent to close on the renegotiated terms," the suit alleged.
Ebix had signed an agreement in 2019 before the pandemic to acquire Yatra Online.
"Furthermore Ebix also caused it to be unable to go forward with its rights issue as its stock price had fallen following Ebix declaring the termination of its merger agreement and leaking the information to the stock exchanges."
