SourceHOV-Exela Deal Appraisal Suit Appealed After Investor Win

July 2, 2020, 4:42 PM UTC

The former SourceHOV Holdings Inc., which merged into Exela Technologies Inc. in a complex three-way transaction, will ask Delaware’s top court to undo a judge’s decision raising the amount SourceHOV investors got in the deal by 12%.

The January ruling by Vice Chancellor Joseph R. Slights—who handed a win to equity holders involuntarily bought out in 2017—bucked a trend that’s had Delaware court watchers wondering if appraisal lawsuits asking the Chancery Court to second-guess a deal price are still worth filing.

The case concerns the 2017 tie-up of SourceHOV, competitor Novitex Holding Inc., and Quinpario Acquisition Corp. 2, ...

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