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.

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 51%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

$50 billion hedge fund firm D.E. Shaw and its bankers at Raymond James are being sued by Gary Chodes, the founder of Oasis Financial.

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.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 729. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

AppZen Adds $50 Million to Develop AI for Finance TeamsAppZen, a maker of software for business finance teams that uses artificial intelligence, has raised $50 million in a deal led by hedge-fund firm Coatue Management. All whilst the world burns, species die, and climate changes... there are better uses of the money Congrats jamiecbarnett!
Källa: WSJ - 🏆 98. / 63 Läs mer »