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 EBITDA – i.e., 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. The Firm’s team on this matter included partners Fred Kessler, William Dahill, Jay Safer, and Sandip Bhattacharji; associates Mara Lieber, Vince Novelli, and Jen Thomas.