December 21, 2011 – Crosby & Higgins LLP Takes $75 Million Venture Capital Dispute to Hearing
December 21, 2011
Crosby & Higgins LLP is serving as trial counsel on behalf of several officers and directors of an internationally renowned wide-format printer manufacturing company responding to claims brought by a large private equity investor concerning a $75 million equity and debt investment in the company. Following the global economic downturn in 2008, the company was placed in CCAA receivership proceedings, leading to an eventual sale of company assets and loss of equity. In 2009, the private equity investor filed an arbitration against the officers and directors seeking at least $75 million in damages arising out of claims for breach of contract, breach of the covenant of good faith and fair dealing, fraud, negligent misrepresentation, breach of fiduciary duties, tortious interference, and violations of certain non-compete and non-solicitation covenants. In response, the officers and directors counterclaimed for damages in excess of $100 million dollars, alleging among other things, fraud, breach of fiduciary duties, breach of contract, breach of the covenant of good faith and fair dealing, and tortious interference with business relationships and prospective economic advantage. After months of complex litigation, including multiple discovery motions, depositions, third-party discovery, and summary disposition motion practice, a two week evidentiary hearing was held in New York, followed by substantial post-hearing briefing and oral argument on the remaining claims and counterclaims. The parties are awaiting a final award.