Stay current on changes and developments in corporate law with a wide variety of resources and tools.
Sept. 30 — A former Mozido LLC director lost his bid to exercise alleged options worth as much as $56 million that would have allowed him to buy a 1 percent stake in the mobile payment-system maker, after a Delaware Chancery Court ruling ( Geier v. Mozido LLC, 2016 BL 321867, Del. Ch., No. 10931-VCS, 9/29/16 ).
Vice Chancellor Joseph R. Slights III said Sept. 29 that Philip Geier Jr. couldn't pursue his option claims because two entities that he was affiliated with had executed a broad release of claims in settling a New York state court lawsuit. The court found the release covered Geier given his undisputed close connection to and association with the entities.
The court also found that the option claims arose prior to the release and weren't carved out in it. “This is the classic model of a general release and the Option claims are clearly captured within this broad release language. How could they not be?” Slights wrote.
Mozido is pleased the court found that Geier's claims didn't have a basis, said the company's attorney Dean Pamphilis, from Kasowitz Benson Torres & Friedman in Houston, in a statement. The alternative would have resulted in Geier obtaining “an enormous windfall at the expense of Mozido, its employees, and its investors,” Pamphilis said.
Geier's attorneys didn't immediately respond to a request for comment.
Geier, an advertising executive, claimed that Mozido refused to honor incentive options that were promised to him in exchange for his board service (13 CARE 867, 4/24/15). Geier, who served on the closely-held company's board for about 14 months, said the options would have allowed him to acquire shares worth millions of dollars for the price of $135,000.
The company argued that the options didn't exist.
To contact the reporter on this story: Michael Greene in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
The opinion is available at http://src.bna.com/i3l.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)