The strange tale of TransPerfect has taken a dramatic turn.
Delaware Chancellor Andre Bouchard ruled Wednesday that co-owner Phil Shawe undertook actions that “obstructed discovery, concealed the truth, and impeded the administration of justice. He needlessly complicated and protracted these proceedings to (Liz) Elting’s prejudice, all while wasting scarce resources of the Court.”
Bouchard went on to list Shawe’s actions that included hacking into Elting’s Email account and ordered that Shawe pay Elting’s legal fees. Click on the link below for the full memorandum decision from Bouchard.
Bouchard earlier ordered that the process of selling the company get under way. That has resulted in a heated response from Shawe, who serves as co-CEO of the New York company with Liz Etling his former fiancé.
Employees of TransPerfect, which provides translation and other services, have formed a group known as Citizens for a Pro-Business Delaware. The group is proposing legislation that would have the effect of overturning Bouchard’s decision.
The group has hired a lobbyist and undertaken advertising and public relations efforts that include booth space at the Delaware State Fair. The source of funding for the group remains unclear.
Shawe has said he will fight the sale all the way to the Supreme Court.
TransPerfect, which is believed to be highly profitable, may be worth as much as $1 billion. Elting is not opposed to the auction of the company.
Shawe and Elting founded the company but in recent years their business relationship has sourced after both went their separate ways in their personal relationship.
Bouchard ordered the sale after the former couple could not agree to sell their stakes in the company. Both own a 50 percent stake. Forbes also reported that Bouchard ordered that Shawe pay Etling’s legal fees, which could run into the millions of dollars.
