Activist sues RENN CEO Joe Chen, SoFi, SoftBank to 3x the RENN market cap. Chen likely to cash settle within 3 weeks to keep his SoFi board seat in Chamath's SPAC deal.
Does the fact that IPOE has despac make Chen less likely to settle? Also is it possible that Chen settles directly with Oasis without benefiting rest of RenRen shareholders?
I don't think Chen can technically settle with Oasis since it's a derivative lawsuit on RENN's behalf. Also even if that was possible I think the same plaintiff would sue the living sh*t out of Oasis. If you go through the original court docs it's already pretty clear that Judge Borrock is on the plaintiff's side due to the crystal clear self dealing as is, so I'd imagine the self dealing would be even more apparent if the settlement was made with Oasis.
The despac is just the business combo transaction, Chen still owns his pro rata share of the combined SOFI shares. As a result of the latest update (posted by Reagan in another comment), they now have to post up $560m in an escrow account and the appeal for the Order of Attachment has been denied. Bullish and looks like the first steps of a settlement.
Thanks for that. Correct me if I’m wrong, seems the defendants hold 22 mil Sofi shares worth $330 mil at $15 Sofi share, and roughly half of that belongs to SoftBank. If this is all that is at stake, then settlement amount may be smaller instead of $560 mil that Oasis is asking.
Btw I’m not banking on the full $560m settlement that would bring the $RENN value to $50+… my price target in the valuation section is risk adjusted for various scenarios.
Newest update:
https://www.docdroid.net/GEvz7Rg/653594-2018-in-re-renren-inc-derivative-litigation-v-xxx-stipulation-so-or-649pdf-pdf#page=3
Any news/update behind the move today?
Not that I’ve seen. Normal volume
Seems the court date has been adjourned from 23 Aug to 20 Sep
Does the fact that IPOE has despac make Chen less likely to settle? Also is it possible that Chen settles directly with Oasis without benefiting rest of RenRen shareholders?
I don't think Chen can technically settle with Oasis since it's a derivative lawsuit on RENN's behalf. Also even if that was possible I think the same plaintiff would sue the living sh*t out of Oasis. If you go through the original court docs it's already pretty clear that Judge Borrock is on the plaintiff's side due to the crystal clear self dealing as is, so I'd imagine the self dealing would be even more apparent if the settlement was made with Oasis.
The despac is just the business combo transaction, Chen still owns his pro rata share of the combined SOFI shares. As a result of the latest update (posted by Reagan in another comment), they now have to post up $560m in an escrow account and the appeal for the Order of Attachment has been denied. Bullish and looks like the first steps of a settlement.
Thanks for that. Correct me if I’m wrong, seems the defendants hold 22 mil Sofi shares worth $330 mil at $15 Sofi share, and roughly half of that belongs to SoftBank. If this is all that is at stake, then settlement amount may be smaller instead of $560 mil that Oasis is asking.
Roughly checks out but the lawsuit also includes a bunch of other companies that were ”sold” to oasis, totaling $560m
Btw I’m not banking on the full $560m settlement that would bring the $RENN value to $50+… my price target in the valuation section is risk adjusted for various scenarios.
The judge has asked the defendants to produce an attachment by Monday? Thoughts?
Just added an update. Lookin pretty hot