A bitter legal battle has ignited regarding the actual worth of Rivada Networks’ shares, instigated by David Shuman, a shareholder, against Declan Ganley, the company’s founder. Shuman has taken legal action against Ganley, demanding the payment of a defaulted debt judgement, which court documents indicate is nearly £18 million ($20 million) in value, accounting for interest.
Ganley, having been compelled to pass over 20,000 shares to Shuman at an auction, believes this should suffice to conclude the issue. This is based on his assertion that the worth of these shares greatly surpasses the outstanding judgement’s amount. He has guestimated these shares to be worth a minimum of £13.6 million ($15.1 million), this figure was derived from recent individual share transactions. However, in a recent deposition pertaining to the ongoing lawsuit, Ganley posited that the actual worth could rise to over £90 million ($100 million), in light of most recent fundraising.
In paperwork filed to the New York Supreme Court this week, Shuman has dismissed Ganley’s valuation as ludicrous, stating Ganley hasn’t the slightest idea of the stock’s actual worth. Shuman also argues that Ganley’s testimony, when questioned about the shares’ worth during a deposition in February, was vague and unconvincing.
Quoting from the latest deposition put forth by Shuman’s legal team, it reveals several instances of Ganley admitting he’s unsure of Rivada shares’ worth, then contradicting himself by admitting they’ve sold for as much as £7,200 ($10,000) per share in recent fundraising.
Shuman’s legal counsel suggests ‘the proof of the pudding is in the eating’. They claim an offer of £242,400 ($336,000) was made to Ganley and Rivada to repurchase the shares following the auction, an offer which was completely disregarded. Shuman asserts that they, namely Ganley and Rivada, are reluctant to invest their money where it matters, as evidenced by their failure to propose more than £11.5 ($16) per share at the auction and later rejecting an offer to buy back the shares for £242,400 ($336,000) or £12.1 ($16.8) per share.
In the latest developments at the New York superior court, accusations flew as Mr Shuman branded Mr Ganley a ‘habitual non-payer’, alleging he used multiple legal strategies in various jurisdictions to stall proceedings, employing unjustifiable arguments and disagreeing with written evidence.
Due to the ongoing legal battle, Mr Ganley has been compelled to relinquish numerous personal assets to fulfill the court’s ruling. These include several businesses, a pub located in Galway, a four-acre plot of land, and multiple vehicles.
In his most recent legal documents, he contended that per established law, a lender is not entitled to double recovery on one debt. He argued that should Mr Shuman be allowed to lay further claims, it would result in unjustly significant financial gain for him.
Moreover, allegations of ‘extortion’ and ‘fraud’ were also made by Mr Ganley against Mr Shuman. He accused him of wrongly retaining a separate parcel of 150,000 company shares, with the estimated value reaching $115 million, but potentially ballooning up to $750 million according to Mr Ganley’s higher valuation stated in the deposition.
In another development, Rivada has embarked on a fundraising endeavour to accumulate billions of dollars to construct a private, impassable, satellite-powered internet communication system named ‘the OuterNet’.
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