Firm Obtains Complete Dismissal of Fraud and Contract Claims Arising From $110 Million Acquisition
July 11, 2018
Symbio SA, a global tech firm with significant assets in China, was sold in 2015 for $110 million. After the sale, the purchaser sued Symbio’s former management and shareholders in the Commercial Division of the New York Supreme Court, alleging that defendants overstated Symbio’s earnings before interest, taxes, depreciation and amortization. Plaintiff asked the court to seize $10.7 million held in escrow, and to award additional compensatory and punitive damages. The Firm moved to dismiss on behalf of all defendants. In a decision read from the bench on June 21, 2018, the Court agreed completely with the Firm’s arguments, holding that plaintiffs’ claims were deficient, that plaintiffs, not defendants, breached the sale contract, and that the contemporaneous evidence demonstrated that the fraud claims were meritless.