Good afternoon,
The after effects of the bitter Delaware battle for New York-based translation services company TransPerfect could be headed back to the courtroom.
After many twists and turns in Chancery Court, the case led to an estimated quarter of a billion dollars in legal bills.
Both Shawe and Elting controlled 50-50 stakes in the privately held company.
The one-time couple went their separate ways but managed to work together for years. The working relationship deteriorated and led to the sale. Shawe prevailed but has returned to court.
Recently Shawe filed suit against TransPerfect competitor Lionbridge in U.S. District Court in New York. Lionbridge entered the picture by expressing an interest in acquiring TransPerfect during the Chancery battle.
According to the suit, about 20 bidders tried to acquire TransPerfect, including hedge fund HIG, which has a stake in Lionbridge Technologies and private equity giant Blackstone Group.
In November 2017, the court-appointed custodian determined that Shawe made the best offer and Elting cashed out.
Elting then filed a motion to block the sale to Shawe as did HIG. The motion was denied.
Shawe’s suit claims that Lionbridge made a “hopeless bid” to buy TransPerfect at a court-ordered auction so it could steal trade secrets.
As reported earlier, a group of TransPerfect employees and others, known as Citizens for a Pro-Business Delaware are back in the picture.
They are objecting to the ongoing legal bills after the sale they view as hampering TransPerfect.
Meanwhile, Shawe, unhappy with his treatment in Chancery Court, moved TransPerfect’s state of incorporation to Nevada.
For now, dramas involving TransPerfect are likely to play out elsewhere. – Doug Rainey, publisher.
