Our professional shareholder representation services team is purpose-built to ensure the depth and breadth of skills required to solve post-closing problems in common and uncommon deal situations and achieve the best possible outcomes for shareholders. See how our team of experts goes beyond the expected to solve problems for clients in the videos below.
Seven-Figure Sexual Harassment Claim
Shortly before closing, a seller was faced with a sexual harassment allegation and request for a seven-figure claim. Our seasoned shareholder advisory team immediately stepped in at a time of emergency to de-escalate the situation through confidential mediation, and negotiate a settlement to one-tenth of the requested amount – removing concern for the new buyer and allowing for the release of escrow on schedule. Learn more in the video below.
Problem Solved: Seven-Figure Sexual Harassment Claim
Speaker 1 (00:04):
My name is Michelle Kirkpatrick. I'm an attorney at SRS Acquiom. I went to Berkeley for law school. After I graduated, I started a two-year federal clerkship. During the clerkship, I handled over a hundred different mediations, but also handled a lot of litigation as well. I left the clerkship. I started at the world's largest labor unemployment law firm, where I handled mostly litigation, but also some advice and counsel and I left that firm and came to SRS Acquiom. I was in Delaware. I was leaving mediation and I got a call from one of the folks on our team. Right before closing, there had been an allegation against the CEO of the target company of sexual harassment. They were very worried, obviously an allegation of this magnitude is concerning. They were feeling defensive, they were feeling nervous. They were feeling upset.
Speaker 1 (00:54):
So I got right on the phone with the client and I started talking with them. We started developing a strategy immediately. They had not set aside very much money in their expense fund, so I knew we could not rely heavily on outside counsel for this. I knew this was something that I needed to manage very closely myself. We did partner with some experts, and move the matter into a confidential mediation but going into that mediation, our outside counsel actually got a phone call. There had been a family emergency, she needed to leave. So this, you know, under normal circumstances probably would've stopped the mediation. If I had not been there, there wouldn't have been an attorney in the room able to handle this, but thankfully I was there. I was able to step in and help the accuser.
Speaker 1 (01:40):
They wanted a million dollars. But on the other side of it, you know, our clients were sitting there believing that they had done nothing wrong, but I knew from my vantage point that for the shareholders, we couldn't let that emotion carry the day. I knew that we had to step in and reach a resolution that was going to benefit all of the shareholders. I was able to talk with my clients and convince them based on my experience that litigation was not going to be the most productive path. I knew that if we went down that road, we would need to raise money, which they weren't interested in doing and I knew that if we allowed their emotions to dictate the experience, we were going to have real problems. I was also able to navigate the mediator and the other side and, and get them down to a resolution, below six figures.
Speaker 1 (02:33):
So a tenth of the original demand, the great news is that we settled it that day. There were no other claims in the deal and we were able to release the escrow right on schedule without having to spend almost any money and without any further issue. They had just bought this company, they didn't want this liability. They didn't want litigation. And they didn't want to have to handle it. So they were very, very pleased when I got to call them later that day and say, this is taken care of, the problem solved.
Multi-Million Dollar Indemnity Claims
The seller in a large biotech deal received multiple indemnity claims over several months, culminating in a fraud claim into the tens of millions of dollars. Our team of experts calmly defused this situation through confidential mediation, ultimately reducing all of the claims to a third of the escrow and also building a strong relationship with the buyer in the process. Learn more in the video below.
Multi-Million Dollar Purchase Price Adjustment Claims
A seller was facing allegations of fraud and other claims worth several million dollars against a purchase price adjustment escrow, a scenario that could have been disastrous and expensive for shareholders. Watch the video below to learn how our team of experts solved this problem with a solution that left both seller and buyer pleased.
Ensuring an Optimal Multi-Currency Escrow Release
In handling an escrow release for a global multi-billion dollar deal across multiple time zones and currencies, SRS Acquiom could have simply instructed the escrow agent to release the funds. Our team went beyond the expected to work with the escrow agent and release funds throughout the day – and night – to optimize foreign exchange rates for each individual securityholder. Watch the video below to learn more.
Learn more about our Professional Shareholder Representation services