NEW YORK & WILMINGTON, Del .– (COMMERCIAL THREAD) –Transparency, the world’s largest provider of language and technology solutions for global businesses, achieved a major legal victory by successfully foiling a bogus sanctions motion brought by Ross Aronstam, a Delaware law firm hired by the custodian appointed by the Court of Chancery Robert Pincus to carry out a program against the interests of the company. Ross Aronstam previously employed Delaware Supreme Court Chief Justice Seitz, who ruled on some of TransPerfect’s appeals despite having previously recused himself twice for self-identified conflicts of interest.
TransPerfect was also successful in securing an order from the Delaware Chancellery court that relieves Pincus of his custodial role and ends a three-year battle to remove him after TransPerfect’s ownership was consolidated in 2018. In a letter to Employees praising their business acumen and the performance of TransPerfect despite his interference, Pincus implicitly admitted that his appointment was unnecessary and that there had been no obstacle to the “continued success” of the company. His letter infuriated the many TransPerfect employees who saw their health benefits cut by Pincus as he simultaneously squandered millions of dollars in the company’s coffers.
TransPerfect has now filed a motion for damages for the most recent alleged acts of dishonesty by Pincus and his lawyer, Jennifer Voss of Skadden. This motion, pending before new Chief Chancellor Kathaleen McCormick, details Pincus and Voss’ allegations of serious misconduct, including the improper withholding of $ 4 million in escrow funds under false pretenses. It also chronicles Pincus’ ever-changing parade of apologies to hijack escrow, which turned into nothing more than an admission that he engaged in self-help and improperly froze the ‘escrow as insurance against “possible future” claims.
Escrow funds were to be returned to TransPerfect CEO Phil Shawe and former shareholder Liz Elting three years after the court-ordered sale was finalized. Despite a Chancellery Court ruling confirming that there had been no “claims” against the escrow and that its termination date had passed, Pincus and Voss improperly froze the account indefinitely. Specifically, the escrow agreement – which was drafted by Pincus and Voss of Skadden – expired on May 7, 2021 and clearly states that all money must be returned after three years, unless there is have “existing” complaints pending.
TransPerfect’s petition is rooted in the absence of a provision allowing for a unilateral extension of escrow for potential “future” claims. Nonetheless, Pincus openly violated the contract, engaged in selfish self-help, and again flaunted the principles of well-established Delaware contract law.
Pincus, Voss, and Skadden also generate more billable hours for themselves by refusing to accept full payment for “fees” mistakenly ordered by TransPerfect, and have used tactics such as not depositing checks and refusing to pay. accept the funds in escrow ordered to be paid to them. Consistent with these acts of bad faith, Voss filed his own frivolous contempt petition which did not disclose Skadden’s obstructionist behavior and is designed to generate even more incidental costs.
TransPerfect has now been forced to incur more than $ 50 million in custody fees by Pincus and his agents, and the current motion calls on the Court of Chancellery to end this perverse and highly unethical warmongering . “This six-year gravy train has to end for Robert Pincus and Jennifer Voss,” Shawe said. “These ‘state actors’ have declined their fiduciary obligations and continue to pocket millions for ‘work’ of no value to TransPerfect. This injustice must end.
Martin Russo, an attorney for the company, added that “Pincus’ refusal to accept escrow funds clearly shows that he is not interested in being paid for the services Skadden allegedly rendered; Rather, it appears he intends to grab a fund that he and Skadden can bill indiscriminately against in the future, despite the fact that their legitimate duties ended years ago. Even Chancellor McCormick has publicly acknowledged that TransPerfect is not a credit risk and it follows that no escrow is necessary. ”
Transparency is the world’s largest supplier of Tongue and technological solutions for global affairs. From offices in more than 100 cities on six continents, TransPerfect offers a full range of services in more than 170 languages to customers around the world. Over 5,000 organizations worldwide use TransPerfect GlobalLink® technology to simplify the management of multilingual content. With an unprecedented commitment to quality and customer service, TransPerfect is fully ISO 9001 and ISO 17100 approved. TransPerfect is headquartered in New York, with regional headquarters in London and Hong Kong. For more information, please visit our website at www.transperfect.com.