AUSTIN, Texas--(BUSINESS WIRE)--Alex Davis, founder and CEO of Disruptive, won a significant court ruling against Kenneth Rickel, who has attempted to extort millions of dollars from Davis based on a willfully distorted interpretation of a settlement agreement the parties signed in 2014.
The straightforward ruling from the Los Angeles County Superior Court determined that the settlement agreement entitled Rickel only to the profits from a Disruptive fund designed to invest exclusively in one particular company – and not to a share of Davis’s entire Disruptive business, comprised of a multitude of assets, for the remainder of Davis’ lifetime, as Rickel falsely claimed.
Davis moved on from an early business arrangement with Rickel more than eight years ago, after learning that Rickel had been sanctioned by the SEC for illegal short selling, and went on to build an extremely successful business. Sadly, months after Davis’s brother tragically died, Rickel - who is married to Davis’s mother Nancy Davis - attempted to gain an unwarranted stake in Davis’s business by threatening to file a defamatory complaint alleging that he was responsible for his stepson’s success. Now Rickel, whom the SEC sanctioned for violating the securities laws, is left only with what was stated in the original settlement agreement, while Davis is vindicated from the fabricated lawsuit Rickel concocted in a shameful pursuit of profits he did not earn.
Alex Davis is represented by Matthew S. Dontzin and David A. Fleissig of Dontzin Nagy & Fleissig.
"This is an important ruling for Alex Davis that fully vindicates what has been his position throughout this dispute – that the 2014 settlement agreement entitled Mr. Rickel only to an interest in a single fund – and not to an interest in Disruptive or any of Davis’ other current or future businesses. Mr. Rickel, sadly, was trying to take advantage of his stepson’s success,” said Matthew S. Dontzin, lawyer for Davis
With this legal victory, Davis looks forward to putting this unfortunate family matter behind him and will remain focused on building on Disruptive's success and continuing the legacy built by his grandfather, Marvin Davis, from whom he learned hard work, business acumen, industry disruption and philanthropy.
Disruptive is a global technology investment firm based in Austin, TX. Founded in 2012 by CEO Alex Davis, Disruptive – formerly known as DTA – has deployed billions of dollars in the private sector with investments in top-performing, late-stage private technology companies. Mr. Davis has built out the firm to include multiple business lines, including proprietary investments, investment banking, business development, lending, and more, so as to provide a full suite of services to late-stage (and often earlier), private technology companies.