Sadis Wins $50+ Million in Appraisal Rights Action for Client
Client Awarded Over $50 Million, Including Interest, and Premium Over Deal Price
Sadis won a major trial victory for its clients, Manichaean Capital, LLC and affiliates (“Manichaean”), winning an award of over $47.3 Million as an appraisal of the fair value of shares in SourceHOV Holdings, Inc. (“SourceHOV”). The total award was approximately $57 million, including interest. Notably, the Award was almost three times higher than the value argued by opposing counsel: The Court valued the shares at $4,591 per share, whereas opposing counsel argued for $1,633 per share.
Importantly, the Court’s verdict was over 25 times higher than value of the merger consideration – (Exela Technologies, Inc. stock) – on the date it became eligible for release from a lock-up. The $57 million total award far exceeded the $1.5 million value Exela Technologies, Inc. stock that the clients would otherwise have received had they not pursued appraisal rights. In addition, the trial award was a significant premium over the stated deal price.
Sadis regularly handles appraisal rights actions. Sadis also advises clients on using appraisal rights to negotiate for better corporate governance rights or favorable pre-litigation settlements. If you have any questions about this case, or about appraisal rights generally, please contact Sam Lieberman at 212-573-8164 or slieberman@sadis.com. In addition, for more information regarding our Securities Litigation practice, see our practice page for details.
Sam Lieberman (Partner) was Lead Trial Counsel in this case, and he led a trial team that included Michelle Malone, Desi Ilieva and others. In addition, for more information regarding our Securities Litigation practice, see our practice page for details.
