WILMINGTON, Del., May 16, 2017 /PRNewswire/ -- Citizens for a Pro-Business Delaware filed a motion to unseal the TransPerfect custodian advisors' fees and expenses. Although the court advised parties to file public versions of confidential transactions, the custodian has not done so, and in fact has withheld details of fees and expenses paid to hired consultants.
Citizens for a Pro-Business Delaware is seeking transparency in payments approved by Custodian Pincus which have caused a reduction in employee retirement benefits as well as an increase in healthcare premiums of over 13% for workers with families. "We are simply asking for Mr. Pincus to share where over $18 million of TransPerfect's funds have been spent in the last 15 months," said Chris Coffey, Campaign Manager of Citizens for a Pro-Business Delaware.
Custodian Robert Pincus, Partner at Skadden, Arps, Slate, Meagher & Flom LLP, has reported charging the company $1,400 per hour for his services, one of the highest rates reported in the country and three times the average rate of $450 per hour for similar services in Delaware. In addition to the attorney's plump hourly rate, Pincus has hired a plethora of specialized consultants from industry giants like Credit Suisse, Alvarez and Marsal, Houlihan Lokey, Ernst and Young, Pennell Venture Partners, Proskauer Rose, Williams & Connolly, and the Connor Group.
After taking the reins away from TransPerfect managers, Pincus' band of consultants oversaw the largest data breach in the company's history, for which TransPerfect is currently being sued. While the Custodian continues to log hours and has added to the bottom line of Skadden, Arps, Slate, Meagher & Flom LLP, Shirley Shawe's Section 211 action, which has posed a viable solution, so far has not been accepted. Last month, Shawe filed a lawsuit to force a stockholder meeting where she would sacrifice her vote to TransPerfect majority co-owner, Elizabeth Elting, and remove the deadlock that initiated the court case.
Citizens for a Pro-Business Delaware hopes to shine light on the exorbitant amounts spent to prepare for the company's sale, which already risks the livelihoods of over 4,000 employees. "Employees who are already fearful of losing their jobs are now spending more on benefits, while the custodian and his hidden consultants are raking in millions," said Chris Coffey.
CPBD continues to rally Delaware residents to support the company's workers and speak out against the forced sale of the successful company. The organization is currently fighting to pass a Senate bill that would mandate a three-year waiting period when forcing the sale of a privately-held company. CPBD has vowed to persist in the fight for TransPerfect's 4,000 employees whose jobs are threatened by the forced sale.
Citizens for a Pro-Business Delaware is a group made up of more than 2,200 members including employees of the global translation services company TransPerfect as well as concerned Delaware residents, business executives and others. It formed in April of 2016 to focus on raising awareness with Delaware residents, elected officials, and other stakeholders about these issues.
For more information on Citizens for a Pro-Business Delaware visit DelawareForBusiness.org.
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SOURCE Citizens for a Pro-Business Delaware