Some California residents may be aware that Fujifilm and Xerox were in talks about a merger. On June 18, Fujifilm filed a lawsuit against Xerox for reneging on the deal. Fujifilm is asking for more than $1 billion and punitive damages since Xerox walked away from the $6.1 billion transaction.
The case, which was filed in New York, argues that two activist investors, Darwin Deason and Carl Icahn, pressured Xerox into walking away from the deal. Xerox came to a settlement with the two investors that included the company coming under new management. The merger had been agreed upon in January. Xerox would have become part of the Asian joint venture Fuji Xerox, and Fujifilm would have controlled a majority of Xerox stock.
Deason, who is a major Xerox investor, said the merger was a way for the company's CEO to keep his job, and both he and Icahn said it undervalued Xerox. As part of the settlement with the two investors, the CEO stepped down. Fujifilm wants a declaration that it is owed $183 million for the merger's termination.
Business litigation may sometimes be a necessity for companies at all levels and not just for major global corporations. The need could arise because of contract disputes, disputes with employees, disputes over intellectual property, issues with partners, issues of product liability and more. Even if a situation does not initially look as though it is going to escalate into a full-blown lawsuit, a business owner may want to get legal consultation to ensure that laws are followed and any needed documentation is prepared. An attorney also may be able to advise as to how to respond to the situation before it escalates.
Source: CNBC, "Fujifilm sues Xerox over aborted merger, seeks more than $1 billion,"June 18, 2018