Dentons law firm sues ex-client Steel Connect for $1.7 million
21/07/2023 21:59
By David Thomas
(Reuters) - Global law firm Dentons sued its former
client Steel Connect Inc on Thursday, claiming the publicly
traded supply management company failed to pay more than $1.7
million in legal bills.
In a lawsuit filed in New York County Supreme Court,
Dentons' U.S. branch said it was hired by a Steel Connect board
committee that had been created to negotiate a potential
take-private buyout of the company by Steel Partners Holdings
LP, a holding company that already owned shares in Steel
Connect.
Dentons said it was hired in January, two months after the
merger plan was terminated. Four months later, Dentons lawyers
helped put together a deal that gave Steel Partners an 85.12%
equity interest in Steel Connect in exchange for $200 million in
working capital for Steel Connect.
Dentons lawyers represented Steel Connect's board committee
in the deal, while White & Case represented the company itself.
Dentons said it billed Steel Connect seven times, with the
last invoice being sent July 10. None of the invoices were paid,
and neither Steel Connect nor its strategic planning committee
complained about them, the firm said.
Spokespersons for Dentons, Steel Connect and White & Case
did not immediately respond to requests for comment. Lawyers
from Dentons' U.S. branch are representing the firm in the
lawsuit, including Dentons US general counsel Edward Reich.
The case is Dentons US LLP v. Steel Connect, Inc., New York
County Supreme Court, Index No. Unassigned.
For Dentons US: Edward Reich and Brendan Zahner, of Dentons
US
For Steel Connect: Not available