-

Skadden Arps Continues to Abuse Custodianship Powers Despite Successful Resolution: Citizens for a Pro-Business Delaware

WILMINGTON, Del.--(BUSINESS WIRE)--Today, following a Delaware Business Court Insider article reporting that the custodianship case between TransPerfect Global’s co-founders had been successfully resolved, Citizens for a Pro-Business Delaware Campaign Manager Chris Coffey released the following statement:

“For all the unnecessary -- and ethically questionable -- meddling by the Chancery Court, Chancellor Bouchard, and his former law firm, Skadden Arps, yesterday’s settlement is the closing of an unnecessarily stressful chapter in the lives of the thousands of TransPerfect employees who founded Citizens for a Pro-Business Delaware.”

“More importantly, the successful resolution was accomplished without Kramer Levin charging exorbitant and undisclosed legal fees to TransPerfect, which begs the question: why does Skadden Arps think they can get away with continuing to overbill the company in perpetuity? Is it because they know former Skadden attorney and current Chancellor Andre Bouchard has no interest in stopping his old colleagues from profiting on the backs of everyday hardworking employees like our members?”

“Since being appointed custodian of TransPerfect, Skadden Arps, led by Jennifer Voss and Bob Pincus, has not once produced an itemized invoice for the $14 million in alleged secret services it claims to have performed. It sure must be nice to be a part of Delaware’s elite legal community.”

“The system needs to change. Our members and TransPerfect’s employees deserve to know where that money went. If Chancellor Bouchard has any respect for the law at all, he must immediately order Skadden to disclose and itemize their billings to TransPerfect.”

“Regardless, this successful resolution is a significant victory for TransPerfect’s employees and shareholders, and a long-overdue step forward for good government and judicial accountability in Delaware’s courts.”

Citizens for a Pro-Business Delaware is a group made up of more than 5,000 members including employees of the global translation services company TransPerfect, as well as concerned Delaware residents, business executives and others. They formed in April of 2016 to focus on raising awareness with Delaware residents, elected officials, and other stakeholders about the unprecedented forced sale of TransPerfect. While their primary goal of saving the company has been accomplished, they continue their efforts to fight for more transparency in the Delaware Chancery Court. For more information on Citizens for a Pro-Business Delaware or to join the cause, visit DelawareForBusiness.org.

Contacts

Chris Coffey, ccoffey@tuskholdings.com

Industry:

Citizens for a Pro-Business Delaware

Release Versions
English

Contacts

Chris Coffey, ccoffey@tuskholdings.com

More News From Citizens for a Pro-Business Delaware

Citizens for Judicial Fairness Slams Outrageous Attorney Fees Awarded in Delaware Following Comprehensive New Study

WILMINGTON, Del.--(BUSINESS WIRE)--Today, Citizens for Judicial Fairness condemned the Delaware Court of Chancery’s outrageous attorney fee rewards following a new academic study that exposes how fees are spiraling out of control and disconnected from any meaningful measure of risk or performance. The study from three law school professors reveals that Chancery fee awards lack consistent benchmarks and routinely overreward a small group of insider law firms, including cases where judges approve...

Citizens for Judicial Fairness Celebrates Introduction of Wheelspin in Delaware’s Chancery Court, a Historic Win for Chancery Reform Advocates

WILMINGTON, Del.--(BUSINESS WIRE)--Today, following the announcement that Delaware’s Court of Chancery will introduce randomized, automated case assignments – or “wheelspin” – effective September 15, 2015, Citizens for Judicial Fairness released the following statement from TransPerfect Founder Phil Shawe “For over a decade, TransPerfect has fought for basic fairness in the Chancery Court. Adopting a randomized “wheelspin” method to decide what judge is assigned to a case--and taking that power...

Citizens for Judicial Fairness Slams Excessive Delaware Chancery Fees Following New Stanford Report

WILMINGTON, Del.--(BUSINESS WIRE)--Citizens for Judicial Fairness today responded to a new Stanford study from renowned professor Joseph Grundfest that shows Delaware’s Chancery Court has become a national outlier in awarding excessive legal fees. The report, which analyzed thousands of cases, found that Delaware hands out attorney fee multipliers at a rate up to 57 times higher than federal courts – with some attorneys being paid as much as $35,000 an hour. The findings were highlighted in The...
Back to Newsroom