Apollo loses important court ruling in a carefully watched dispute with executives

A former employee of Apollo Global Management’s freight company won a significant court ruling in a carefully watched proceeding against a private-equity giant.

Former executive Cargo management company Ceva Logistics In the proceedings, Apollo alleged that the company went bankrupt and claimed them from their stock in a complex stock debt swap in 2013.

Apollo — Which of these has been shaken by Chairman and CEO Leon Black’s Surprising Exit In a dispute over his business relationship with the dead pedophile Jeffrey Epstein — he remained in control of Seba after bankruptcy.

In Tuesday’s decision, which dismissed Apollo’s summary judgment and set up a possible trial, U.S. judge Timothy Corrigan said a jury gave a stock incentive plan from a Seba employee who was dismissed from Apollo. We have determined that we can reasonably find that we have concealed it illegally. bankruptcy.

“There is a real question of important facts as to whether there was a real man-made object. [falseness and trickery] By hiding the creation of a 2013 long-term incentive plan that eliminates summary judgment, “the judge ruled.

Plaintiff Michael McEvoy argues that Ceva executives who stayed in the company after bankruptcy needed to maintain some of their capital, and other executives like him lost all their money. According to the proceedings, all stakeholders in the same class are to be treated equally, and dismissed executives claim they were unaware of the alternative.

Apollo said it still hopes to win in court. “Today’s ruling was procedural and did not address the merits of any claim,” a spokeswoman for Apollo said. “Apollo believes the court will dismiss the only remaining claim against Apollo.”

Hand has an open law book
US judge Timothy Corrigan has determined that there is something “smart” in creating an incentive plan.
Fairfax Media via Getty Images

Ceva’s case is Pursued by plaintiffs outside the long-favored legal excursion of private-equity funds — That is, the US Bankruptcy Court and the Delaware Chancery Court in New York.

In the Ceva dispute, New York bankruptcy judge James Garrity dismissed Makeboy’s proceedings in early 2018, deciding that his allegations were not separate from the bankruptcy as a whole.

However, Makeboy appealed and Judge Jed Rakov of the United States decided that another case could be discussed. Judge Gality then moved Makeboy’s proceedings to Florida.

Apollo loses important court ruling in a carefully watched dispute with executives

Source link Apollo loses important court ruling in a carefully watched dispute with executives

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