Exela Accused in New Suit of Not Paying Appraisal Judgment (1)

Exela Technologies Inc. was sued in Delaware Tuesday by former investors claiming the company is hiding assets to avoid paying the $58 million judgment against it while it appeals a Chancery Court decision hiking the amount equity holders got in the complex buyout that created it.

“In the face of its liabilities to plaintiffs, Exela’s fraudulent scheme to leave” subsidiary SourceHOV Holdings Inc. “inadequately capitalized and insulated by the corporate structure of Exela is grounds to pierce the veil” and force Exela itself to pay, the new lawsuit says.

It comes about three weeks after SourceHOV—one of the companies involved ...