TransPerfect Saga Ends With High Costs for Everyone
I would first like to thank my loyal readers for their continued and supportive feedback on my investigative journalism with respect to the TransPerfect case. It is a good feeling for this writer, having shed light on the many issues surrounding this amazing case over the past few years. I am very hopeful that the conversation will be steered toward future reforms that will prevent another successful company from ever having to go through the three-year government takeover that TransPerfect did.
Simply the thought that I and my readership may have played a small role in protecting and restoring Delaware’s business reputation, which is the main-driver of our beloved state’s economy, is very satisfying. When it has to do with the government (and courts are part of the government), the public has a right to know, and is one of the main reasons I began reporting on controversial and political issues as far back as 1998, and my subscriber base is now over 6,000 strong.
I’ll share some of your much-appreciated feedback in a future column. First though, justice prevailed in this case, for the employees — if indeed no one else. When I look back over the history of our country, I think back to when the US was originally created, when kings, or lords, could take property from one and grant it to another. The fight against that unbridled power is at the core of the Declaration of Independence. Our founders knew property rights were essential to freedom and prosperity.
Not to sound too preachy folks, but that is what was at stake in the TransPerfect case. Americans didn’t like that lords could take something from one and give it to another. It’s why we fought the British in the American Revolutionary War and became an independent country. Americans don’t want “equity court judges” to wield that same power that the British once did over us.
Delaware Court of Chancery Chancellor Andre Bouchard, orchestrated sanctions and merits, the likes of which have never been seen in American jurisprudence. So many unanswered questions here? Who benefitted? Few people understand what was really at stake in the Chancery decision to force a public sale of the company’s privately-owned shares — and now, unfortunately, this case has been cited as law along with 3 other cases nationwide involving corporation dissolution.
Shawe prevailed as he won the bid to buy the whole company; yet he had to pay a large premium, massive legal fees, and court-ordered billings to the Custodian. Former co-CEO Elizabeth Elting also fell victim to her corrupt lawyers. Sources at the company say that the settlement price of Shawe’s offer to Elting in 2013, when you factor in a percentage of gross sales over the next 5 years, would have put her price where she is now. So she lost $150 million to attorney fees, as did Shawe. Over $300 million wasted by Delaware elites that could have been used to expand the company and create more jobs.
In the end, for what? So many of our freedoms, that our founding-fathers intended, could be chipped away??
The Delaware governmental system has few checks and balances left, if indeed someone oversteps their power. This situation screams for serious reform! A system built on this type of adversarial process eventually ceases to work, when fear of the Chancellor, turns everyone into pals — cooperating and colluding, which is definitely the appearance of an impropriety by any reasonable standards. That is one of the important lessons I learned while following this case. It became obvious to me that we have a judicial system run by special-interest groups (like the Bar Association), which is too beholden to Bouchard, who is all-powerful, as he was appointed to a 12-year term. This situation screams for serious reform.
Folks, your feedback is really appreciated and I urge you to send me your opinions or thoughts on the TransPerfect Case that rocked the nation’s business world and Delaware’s credibility.
Thank you for your continued input.