TransPerfect CEO Phil Shawe says the company won a New York State Supreme Court–ordered arbitration case related to disputed advisor fees stemming from a 2015 Delaware Chancery Court decision.
Shawe and TransPerfect have battled over fees and the use of a custodian during the disputed sale of the company involving the 50-50 ownership stakes of Shawe and co-founder Elizabeth Elting.
Shawe prevailed in the case but blamed Delaware Chancellor Andre Bouchard for the estimated quarter of a billion dollars in costs arising from the sale.
Shawe stated, “This is the first major victory against those who sought, or are still seeking, to take unfair advantage of TransPerfect stemming from the Delaware Chancery Court’s unprecedented intervention into a private, profitable, and thriving business.”
The complaint for breach of contract was filed in New York State Supreme Court by Cypress Partners, and Justice Jennifer G. Schecter issued an order compelling arbitration of the matter with JAMS Commercial Arbitration Tribunal.
Martin Russo of Russo PLLC, lead outside counsel for TransPerfect, commented, “It was refreshing to litigate outside of Delaware with truly neutral jurists who make decisions based on the facts of the case.”
In a related development, Delaware Chancellor Andre Bouchard stated in a letter that the court no longer sees a need to keep records of payments confidential.
The confidentiality of billing records from the custodian for TransPerfect has been a bone of contention in the case.
Chris Coffey, Campaign Manager of Citizens for a Pro-Business Delaware stated “Although the case has been over since 2015, TransPerfect has paid over $14 million to Skadden Arps with no access to the work the law firm has allegedly completed. This money could have been spent on financial and health benefits or bonuses to hard-working TransPerfect employees.”
Citizens for a Pro-Business Delaware is comprised of TransPerfect employees and other persons. It was formed during the battle over a controlling share of the company.
