SourceHOV-Exela Deal Price Hiked 12% in Delaware Appraisal Case

Former SourceHOV Holdings Inc. investors should be paid 12% more than they got in the three-way merger that created Exela Technologies Inc., a Delaware judge ruled, rebuking SourceHOV for disagreeing with its own expert and misrepresenting its financials “until the eve of trial.”

The decision by Vice Chancellor Joseph R. Slights III bucks a trend that’s had Delaware court watchers wondering if appraisal lawsuits, which ask the Chancery Court to second-guess a deal price, are still worth filing.

The case concerned the 2017 tie-up of SourceHOV, competitor Novitex Holding Inc., and Quinpario Acquisition Corp. 2, a “blank check” public ...