Paranoia reigns in the mind of the Delaware Chancery Court-appointed Custodian, Robert Pincus. He is seeking — through a Court order — to find out who is leaking information that shows just how insidious his administration of TransPerfect Global actually is!
In my opinion, Custodian Pincus is using a false premise to go after employees because he’s embarrassed by Skadden Arps’ outrageous fees being made public, and things being said about him in the news. He’s a court-appointed receiver folks — his bills should be public. The way Bouchard is letting Pincus hide his bills in darkness is similar to what he did for his old friend, Elting’s attorney Kevin Shannon at Potter Anderson — making TransPerfect and/or Philip Shawe pay legal bills with no ability to challenge the reasonableness of the fees. His fees should be public. Instead, Pincus is conducting a witch-hunt for employees, which is exactly what he promised employees he wouldn’t do.
Plus, Pincus has not made good on his promise to let employees bid for their company. And, my sources say the custodian could stymie the quarterly press release, which has been a stellar publication, quarter over quarter, for years now. Folks, there is only one way I see this, Pincus is dirty, and he’s trying to mask the truth by silencing employees and sealing everything possible under a court order, with the nefarious help from his former business partner and crony of the Delaware Chancery Court, Chancellor
Andre Bouchard (who adjudicated the most heinous and inequitable decision in U.S. business history). Pincus’ rate of $1,425 per hour is three times the rate of most court-appointed receivers. Bouchard has managed to let his buddy fleece TransPerfect out of millions of dollars.
It is the opinion of this writer that Pincus has illegitimately taken advantage of his position. Why should this Custodian be allowed to get rich off the back of this prosperous company and its employees who have helped build the company to what it is? And then not allow them to bid on ownership of the company in order to save their jobs? I’m hearing speculation from employees that Lionbridge (a competitor) could very well buy the company and possibly outsource many American jobs. Employees should not be silenced by the courts in stating the truth. This is America! And, as disappointing as it may be to Bouchard and Pincus, Free Speech is guaranteed by the Constitution.
Please read the article below from “Delaware Business Now” about this sensational saga, that is now before a New York Court where hopefully some real justice might transpire in contrast to the Kangaroo Chancery Court in Delaware!
I am going to beat this drum until justice is served and these wrongs are righted. Read below folks.
Sincerely Yours,
JUDSON Bennett-Coastal Network
By Delaware Business Now – August 25, 2017
The battle over the sale of translation service TransPerfect now extends to the public relations effort from an employee group.
Tusk Strategies and Chris Coffey of Citizens for a Pro-Business Delaware have asked a New York court to quash the nonparty subpoenas and for a protective order.
The custodian working to effect a sale of the company claims leaks from employees are hampering the process of selling the company.
“The Subpoenas that Petitioners challenge are designed to chill civil discourse on a matter of public importance,” Chris Coffey stated. “This court-ordered sale is unprecedented. It is the first time a Delaware court has forced the sale of an ongoing and profitable Delaware company without stockholders’ consent. The forced sale has potentially significant implications for the future of TransPerfect’s employees’ jobs.”
Coffey continued, “Throughout the sale process, Citizens has tried to draw attention to its members’ concerns about the sale process and its implications. To that end, in late July 2017, Citizens ran (1) a press release referencing concerns that one potential bidder might move their jobs offshore, and (2) another press release and advertisement that listed the fees charged by the Custodian and the many advisors he has hired to assist him in selling the company, collectively totaling more than $20 million over an 18-month period. In response to these two press releases and advertisement by Citizens, the Custodian claims he needs to identify any TransPerfect employees who allegedly disclosed this information – notwithstanding that much of this information was already public.”
Coffey concluded, “The Subpoenas are vastly overbroad and duplicative, and they are nothing more than an attempt to cause ‘unreasonable annoyance, expense, embarrassment, disadvantage, or other prejudice’ to Tusk and Coffey – and, by association, Citizens — as a consequence for the assistance they provided to TransPerfect employees and Delaware citizens in voicing their concerns regarding the Delaware court’s unprecedented actions.”
Citizens for a Pro-Business Delaware has been running advertisements and issuing press releases opposing the sales process.
Citizens has drawn the ire of the custodian, members of the corporate bar and some legislators for its advertisements and press releases that indicate the dispute will harm the state’s incorporation business, a key source of tax and fee revenues.
The sale process comes after co-owners Philip Shawe and Elizabeth Elting have been unable to come up with an agreement to sell the company.
Judson Bennett
Please note new e-mail address,
[email protected]
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Twitter account,
https://twitter.com/Judson_Bennett
This TransPerfect Case Just Gets More Tangled
I have
written several times about the TransPerfect Global fiasco; the one where Delaware’s Chief Chancellor
Andre Bouchard ordered the sale of this very profitable company. A decision that will most likely result in the loss of jobs and even destabilization of the entire company.
Here you have an American success story, and a Delaware Judge who has overstepped his authority by making an arbitrary and capricious decision, which is resulting in an un-American situation. This decision is not only bad for Delaware, but
bad for America.
What is even more interesting and disconcerting, the temporary custodian of the company appointed by Chancellor Bouchard has now decided to apparently inhibit/prevent employees of TransPerfect from exercising their First Amendment rights. Apparently,
600 employees of TransPerfect are openly speaking out about the Court’s decision and the happenings within the company.
Please read the memo below that was sent to the Management Team of TransPerfect requiring spin to be propagated to employees and threatening disciplinary action including job termination. I was copied with this threatening memo by my internal source.
Custodian: TransPerfect is Doing Very Well
Custodian Robert Pincus says TransPerfect is doing well. If so, why is Bouchard looking to auction the firm?
Robert Pincus to TransPerfect Staff
To the Management Team:
TransPerfect is performing exceptionally well and growing quickly, thanks to your hard work. We are committed to keeping it that way, and our highest priority is supporting you and the continued success of the business.
It has come to our attention that some of our employees have recently spoken with the media about the pending litigation between the shareholders of TransPerfect, and in some instances seemingly have sought to attempt to pressure the Delaware court. We believe that those actions are counterproductive and that they should stop.
If you receive a call from a reporter or member of the media, our Company policy is now that you must refer that person to Joel Mostrom, who will respond directly or designate another spokesperson. We want to remind you, and we ask you to remind your colleagues, that: this policy covers all forms of responses to the media, including, without limitation, off-the-record and anonymous statements.
Any deviation from this policy may lead to disciplinary action up to and including termination. Your strict adherence to this policy is expected, as well as appreciated by management and your colleagues. [TransPerfect Employee Handbook] The purpose of this policy is to avoid media and other actions that may negatively impact TransPerfect’s business. Please be mindful of the policy and its importance going forward. We ask each of you as our key managers and leaders to continue to focus on your responsibilities and serving the needs of our clients. All of our efforts should be aligned in that direction. To the extent that your colleagues have questions regarding the litigation, we have included the attached FAQs. Thank you.
Frequently Asked Questions for Employees
- Is the Company definitely being sold and, if yes, when?
- The Delaware Court of Chancery ruled that the Company should be sold, and the Court is expected to make a determination about a sales process in the near future; however, the Court’s decisions will be subject to appeal, so there are no definitive answers to these questions at this time.
- I heard that the Company could potentially be “dissolved”—is that true?
- No—at least not in the conventional sense. While the Company’s ownership structure may change, the Company is expected to continue with business as usual. That is the best path to future value creation, and the Court has clearly indicated its intentions along those lines.
- Is any of this likely to impact the Company’s day-to-day business?
- No! A third director has been appointed by the Delaware Court of Chancery to help resolve any disagreements between the Company’s shareholders and to facilitate the continuation of TPG’s strong growth and success. A final resolution of the dispute between the shareholders will only help the Company. In the meantime, it is important that we all remain focused on serving the needs of our customers.
There you have it folks, your comments are welcome.
Respectfully Submitted,
JUDSON Bennett-Coastal Network
Should Chancellor Bouchard Mandate a Sale of TransPerfect or Allow Parties to Settle?
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- Parties have already indicated possible settlement terms, let them do it.
- No, Mandate a sale and force a profitable company into Dissolution
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Elting and Shawe Both Made Offers
Shawe Offered $300M and Elting said she would Pay Shawe More | Source
Important Stories to Sum up TransPerfect Case
