News Story Highlights Chancellor McCormick’s Criticism: Heist of Tens of Millions & Scorched-Earth Skadden Practices
A debacle in Delaware is being reported on in the press as Citizens for a Pro-Business Delaware is highlighting Chancery Court Chancellor Kathaleen McCormick’s bad-faith approach to Skadden Arps’ past billing practices. This week, a company attorney made a compelling argument that Skadden Arps’ Robert Pincus used Court-granted power to “pull off a heist worth tens of millions of dollars.” That’s a hell of an argument, folks, and one that Chancellor McCormick needs to take seriously!
The company is asking for more details and information about billing practices by Robert Pincus, a former Skadden Arps partner. He billed more than $44 million — an outrageous sum — as the Chancery Court-appointed custodian of the company. In a letter to the Chancellor, the company said, “Pincus’s gamesmanship and bill churning continues… and refusal to engage in discussions towards compromise solutions… and scorched-earth tactics over compromise.” Scorched-earth tactics need to be reined in. So much of this battle needs a strong leader to take control and create fairness. Let’s see if our new Chancellor embraces her leadership role and treats all sides fairly to ensure justice prevails once and for all.
See the Delaware Business Now story below. Let me know what you think about this huge issue for McCormick and our Chancery Court. Your feedback is always welcome!
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By: Douglas Rainey
July 21, 202
Citizens for a Pro-Business Delaware is criticizing a decision by newly sworn-in Chancellor Kathaleen McCormick over billing for services related to the sale of TransPerfect.
Lawyers for TransPerfect Global have requested a change on Chancery Court Chancellor Kathaleen McCormick’s decision regarding Skadden Arps’ past billing practices.
TransPerfect has asked for more detail on billing practices from the Chancery Court-appointed custodian of the company, Robert Pincus, a former Skadden Arps partner, after being billed more than $44 million the past years.
A letter to McCormick stated that “Pincus’s gamesmanship and bill churning continues with these motions and refusal to engage in discussions towards compromise solutions to outstanding issues… Encouraging and rewarding motion practice and scorched-earth tactics over compromise is the antithesis of judicial efficiency and has an antithetical result.”
Chris Coffey, campaign manager of Citizens for a Pro-Business Delaware stated: “TransPerfect employees created Citizens so that other workers would not have to experience the fear of having their livelihoods in the hands of an opaque and out-of-touch Chancery Court. With the appointment of Chancellor McCormick, we have renewed hope that the court will move away from the backdoor dealings that defined the (Andre) Bouchard era, but this ruling does the opposite. Instead of more transparency, Chancellor McCormick is doubling down on the old way of doing business in Delaware. We need a change – we won’t stop our fight until Chancellor McCormick and all justices on the Chancery Court commit to real transparency that will restore public trust in our courts.”
TransPerfect is a New York-based business services company that went through an ownership dispute with founders who controlled a 50% share of the company.
While Chancery ultimately determined co-founder Elizabeth Elating should sell her share to Philip Shawe, fees related to the use of a custodian handling the sale remain an issue.
Under judicial rules, Chancellors are barred from commenting on allegations.