D.E. Shaw is going to trial over the sale of a litigation finance subsidiary, shining a light on a side-pocket deal at the secretive hedge fund firm.

The lawsuit claims that prior to the sale to Parthenon, Raymond James bankers hired by D.E. Shaw pegged Oasis' valuation at more than $140 million — roughly double what it ended up selling for. Sources familiar with the deal also said that Chicago-based private equity company GTCR made a preliminary bid for Oasis that was between $105 million to $125 million.

"Notwithstanding having market information and professional analyses available to them showing even better economic times in 2017 , the defendants pushed for the immediate sale of the Oasis Companies to Parthenon for an undervalued price and ignored obvious alternative options," the lawsuit reads. There are ongoing cases alleging Chodes misappropriated trade secrets when he started his new litigation finance firm, Signal Funding. Employees that worked for Chodes at Oasis and since joined Signal have also sued Oasis for"overbroad" non-compete contracts that prevented them from working at a competitor for more than two years.D.E. Shaw asked staff to sign a take-it-or-leave noncompete, and the deadline is weeks away.

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Fonte: WSJ - 🏆 98. / 63 Leggi di più »