Quinn Emanuel Says Desktop Metal Owes Firm $29.8 Million in Fees

April 11, 2025, 9:00 PM UTC

Quinn Emanuel Urquhart & Sullivan LLP on Friday asked a New York state appeals court to secure $34 million in assets from Desktop Metal Inc. while the firm resolves its dispute over legal fees the company owes.

The order is needed to ensure the firm gets the nearly $29.8 million it’s owed in legal fees since Nano Dimension Ltd.‘s acquisition of Desktop Metal closed on April 2, because Nano intends to divest the 3D printing company’s remaining assets, the law firm said in a petition filed in the New York Supreme Court for New York County.

Quinn Emanuel represented Desktop Metal in its suit alleging Nano breached their merger agreement. The firm “expended thousands of hours to prepare and try the case in this extremely short time,” it said in its petition.

The Delaware Chancery Court on March 24 said Nano deliberately used delaying tactics and breached a “hell-or-high-water” clause in the companies’ merger agreement when the Israel-based company tried to tank approval from the Committee on Foreign Investment in the United States. The court ordered the companies to complete the merger, which was finalized on April 2.

Quinn Emanuel offered Desktop Metal half off its hourly billing rights in its initial engagement agreement. In exchange, Desktop Metal agreed that if it prevailed in the case, the company would pay Quinn Emanuel 120% of its hourly billing rates. With that adjustment, Quinn Emanuel says Desktop Metal owes the firm more than $29.7 million plus interest and further fees.

Quinn Emanuel invoked the agreement’s arbitration clause Thursday. But Quinn Emanuel argues that without an order of attachment, if it goes through the average six-month timeline to complete arbitration proceedings, “it will never be paid.”

Desktop Metal “was in dire straits when the case went to trial just last month,” the firm’s petition said. And Nano argues that only Desktop Metal is liable for the legal bills, but Nano “has also made clear that it intends to divest Desktop Metal of the few assets it has and spin off profits” to itself, the firm says.

“There is considerable risk that Respondent will remove its assets from this Court’s reach, or take other steps to stymie Petitioner, if it becomes aware of Petitioner’s attachment efforts before the order is granted and levies are served,” the petition says.

Quinn Emanuel is seeking an attachment of Desktop Metal’s manufacturing facilities, equipment, and intellectual property up to a value of $34 million.

Desktop Metal didn’t immediately respond to a request for comment.

The case is Quinn Emanuel Urquhart & Sullivan LLP v. Desktop Metal Inc., N.Y. Sup. Ct., No. 652274/2025, petition filed 4/11/25.

To contact the reporter on this story: Mallory Culhane in Washington at mculhane@bloombergindustry.com

To contact the editor responsible for this story: Brian Flood at bflood@bloombergindustry.com

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