Klehr Harrison Client Receives Favorable Decision in Merger Liability Claim
PHILADELPHIA (February 27, 2020) — Klehr Harrison is pleased to share news of a victory on behalf of our client in the case Great Hill Equity Partners IV LP v. SIG Growth Equity Fund I LLLP.
Today, Vice Chancellor Sam Glasscock, III of the Delaware County Court of Chancery issued an opinion that found that the plaintiff was entitled to zero damages on a fraud claim which could have been as high as $121.8 million. The Court awarded the plaintiff $212,000 in damages that the defendants had agreed to pay prior to trial.
The case arose from the sale of Plimus to Boston-based private equity firm Great Hill Partners in 2011. Klehr Harrison represented the primary target defendants, the selling shareholders of Plimus including former CEO, Hagai Tal, an Israeli national, and Senior Vice President, also Israeli, Irit Segal Itshayek.
The plaintiff asserted a number of different claims for fraud and breach of the representations and warranties in the merger agreement. After a 10-day trial in December 2017, the Court issued its decision on liability in December 2018, rejecting the majority of the plaintiffs' claims with the exception of one fraud claim against Mr. Tal only. The plaintiffs' expert opined that Tal was responsible for $121.8 million in damages.
The Klehr Harrison litigation team consisted of Michael Coran, William Hill, Monica Clarke Platt, Gregory Sellers and Ciera Bennett.
You can read more about this in an article titled "Chancery Rejects $122M Damages Bid Over Plimus Deal" from Law360.
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