Dell Reaches $1 Billion Settlement Over Disputed 2018 Stock Swap (reuters.com) 6
Dell on Wednesday said it reached a $1 billion settlement of a lawsuit accusing it of short-changing some shareholders in a controversial $23.9 billion transaction in 2018 that marked its return as a publicly traded company. Reuters reports: The all-cash settlement is subject to approval by a Delaware Chancery Court judge, and will be reflected in Dell's third-quarter results. It resolves claims against the Round Rock, Texas-based computing and technology services company and controlling shareholders, including billionaire Chief Executive Michael Dell and private equity firm Silver Lake.
The disputed December 2018 transaction involved a stock swap related to Dell's interest in software maker VMware. Dell paid $14 billion in cash and issued 149.4 million Class C shares in exchange for outstanding Class V shares, which tracked VMware's publicly traded stock. Holders of the Class V shares sought $10.7 billion in damages, saying their stock was worth far more than Dell paid for it, while the Class C stock was worth far less than Michael Dell and Silver Lake claimed. A trial had been scheduled to begin next month. The settlement also resolves claims against Goldman Sachs Group, which advised Dell on the transaction and stood to receive a $70 million fee. Insurers may pay part of the settlement amount.
The disputed December 2018 transaction involved a stock swap related to Dell's interest in software maker VMware. Dell paid $14 billion in cash and issued 149.4 million Class C shares in exchange for outstanding Class V shares, which tracked VMware's publicly traded stock. Holders of the Class V shares sought $10.7 billion in damages, saying their stock was worth far more than Dell paid for it, while the Class C stock was worth far less than Michael Dell and Silver Lake claimed. A trial had been scheduled to begin next month. The settlement also resolves claims against Goldman Sachs Group, which advised Dell on the transaction and stood to receive a $70 million fee. Insurers may pay part of the settlement amount.
Shady Dealings (Score:1)
Excellent Judiciary (Score:2)
Public Offering rips of some shareholders to enric (Score:2)
I'm shocked! Shocked I say! Why this only happens *every* *damn* *time*.
And while the stock market involves capital, it is not Capitalism; the stock market is a gambling den of iniquity.
Capitalism is the allocation of resources by giving preference to those willing to exchange more than others.
Useful (Score:1)