Claim against the founder of a global group of companies
Hausfeld acted for the founder of a large international business in relation to a dispute about a proportion of the £90 million proceeds of sale of the group.
Our client founded a global group of companies that grew significantly over several decades and which was sold in 2018 for more than £90 million. Two former minority shareholders threatened to bring a claim, alleging that they were entitlement to a share of the proceeds.
Before the sale, our client and his family were the majority shareholders in the key entities. Former minority shareholders in two of the entities, who signed a power of attorney authorising our client to sell their shares and received net proceeds in accordance with their shareholdings, threatened a claim against our client relating to the sale. They alleged that our client had promised to ensure that they would receive a certain percentage of the total proceeds of the group if and when it was sold, amounting to an alleged £1,500,000.
Our client denied the claim, which was contractual but also involved equitable and company law issues, on various grounds. There was a longstanding personal and professional relationship between the parties, meaning the dispute was not only of financial but also of personal importance to our client.
Hausfeld engaged in pre-action correspondence with the minority shareholders and deterred them from issuing a pre-action disclosure application and proceedings in the High Court. We attended a successful virtual pre-action mediation in late 2020, during which a confidential settlement was agreed, without the expense and disruption of court proceedings to our client.