NEWPORT BEACH, Calif., Sept. 17, 2015 /PRNewswire/ — About a month after Santa Monica media company Webxu Inc.‘s plan to acquire nearby marketing firm Media Trust Performance Marketing Inc. fell through in 2013, it was slapped with a $45 million breach-of-contract lawsuit. But last month, after a long legal battle, a Los Angeles Superior Court judge confirmed a $700,000 arbitration award in favor of Webxu.
Plaintiffs Media Trust Performance Marketing, Inc. and MTPM Holdings, LLC and CEO Keith Cohn claimed $45 million in damages as a result of an abandoned 2012 acquisition by WebXU, a Santa Monica based branded website developer. After a week-long arbitration before the American Arbitration Association, the tribunal found that the Plaintiffs failed to prove their case. Counter claims filed on behalf of WebXU also proved successful in rescinding the share exchange agreement based on clear and convincing evidence that the plaintiffs committed fraudulent inducement through intentional misrepresentation and concealment of material facts.
“Companies facing directors and officers liability litigation too often cannot afford to fight plaintiffs seeking multimillion dollar awards arising from unsuccessful mergers and acquisitions. The decision often comes down to either paying a breakup fee or agreeing to a substantial monetary settlement, but in this case, the clients decided to fight and hit back hard, in order to vindicate their position,” explained Uri Litvak, who served as lead trial counsel.
“Our law firm was formed to bring the same high quality legal representation that major corporations enjoy to the small and midsize companies that are the backbone of the American economy. Our experience with mergers and acquisitions and complex litigation on behalf of both private and publicly traded companies allows our clients to focus on their business, confident that we can successfully enforce their rights and protect them from meritless claims in a cost-effective manner,” according to Uri Litvak, founder of The Law Offices of Uri Litvak.
About The Law Offices of Uri Litvak (www.urilitvak.com)
The Law Offices of Uri Litvak was founded by Mr. Litvak, an attorney and strategic advisor with 18 years of experience in the areas of M&A, securities law, shareholder derivative and D&O litigation and other complex litigation and arbitration. Formerly with Skadden Arps, Mr. Litvak has served as corporate counsel for multi-billion dollar publicly traded companies and technology start-ups. The Firm embraces the core principal that world class legal counsel should not be cost prohibitive for the entrepreneur launching a new venture, a midsize company seeking counsel on a complex transaction, or a company of any size facing the need to litigate a high-stakes business dispute.
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