Good afternoon everyone,
The aftermath of the dispute over control of TransPerfect rolls on, even though Delaware Chancery Court last year ruled that co-founder Philip Shawe could buy out 50-50 owner and former fiancé Liz Elting.
The lingering issue is the widely reported quarter of a billion dollars spent during the lengthy dispute over control of the translation and business services company.
Shawe – upset by the legal costs and his treatment in Chancery Court despite the final outcome – moved TransPerfect’s state of incorporation from Delaware to Nevada.
Meanwhile, Transperfect filed suit in a Nevada state court over fees being paid to Robert Pincus, the custodian who eventually recommended that Shawe buy the company.
Transperfect appears to be upset with the nearly $1,500 an hour fees still charged by Pincus.
Meanwhile, Pincus has sued to get the fees, with Transperfect claiming it is not paying the bills because Pincus is not itemizing his invoices.
In the middle of all this is the law firm of Skadden Arps. Pincus is a retired partner in the firm which has long-running ties with Delaware’s political establishment. Skadden lawyers are representing Pincus in his efforts to gain billing revenue.
But that’s not all folks. Phil Shawe’s mother Shirley, who has a one percent share of TransPerfect, is buying a half a million dollars in ads that tie Delaware Presidential candidate Joe Biden to long-running claims of Chancery Court operates in an unfair manner.
The advertisement shows then Sen. Biden in a Senate hearing with rival Elizabeth Warren, a critic of a bankruptcy law change Biden was pushing. Biden claims the ad is misleading. Warren was a Harvard Law Professor at the time of her exchange with Biden and is no fan of Chancery Court.
Despite all of the above, TransPerfect is said to be scouting the Delaware market for office space and a group known as Citizens for a Pro-Business Delaware is seeking changes to Chancery Court’s practices that include a ban on cameras in the courtroom.
Baffled by all of the twists and turns? You are not alone.
Many inside and outside Delaware’s legal community wish the dispute had ended up in New York, the headquarters of TransPerfect.
Enjoy your Thursday and here’s hoping you are able to stretch Labor Day weekend by a day. Delaware Business Now’s newsletter will take a break on Monday and return on Tuesday.
If this newsletter was passed along, sign up here to get your own five-day-a-week email report at no charge. – Doug Rainey, chief content officer.
