News Content
Apollo Global is sued by ex-CEVA employees for losing shares in company
A FORMER CEVA Logistics employee has launched a lawsuit in Florida against Apollo Global Management over allegations a group of employee investors were defrauded out of their EUR17 million (US$19.94 million) shareholding in the company.
In the filed court documents the group of ex-employees and still serving employees accuse Apollo Global Management of restructuring the company in the spring of 2013 in such a way that they lost their stake.
At the time, they say, they owned 8.6 per cent of the shares in CEVA Investments Ltd (CIL), the parent of CEVA Logistics, through holding company CEVA Group, reported London's Air Cargo News.
The employees claim that they were induced to invest in CIL in 2007 when the company was first formed after Apollo's purchase of TNT Logistics for US$1.9 billion and later Eagle Logistics for $2 billion.
In 2013, the court papers say, the defendants instigated a debt-for-equity restructuring based on CIL's shares in CEVA Group having no value.
All equity in CEVA Group was then transferred to a new holding company, CEVA Holdings, for no consideration, giving "improper value and consideration to the employee investors".
Essentially this meant the employees lost all their shares in CIL in without compensation, they argue.
Along the way, the defendants are accused of providing employee investors with "false information" and inducing them to "waive claims".
"In light of Holdco's and CEVA's financial condition, we have been advised that it is unlikely that there will be any recoveries for the shareholders of Holdco in their capacities as shareholders," a letter sent in 2013 reads.
"The directors regret having to write to you with this information," the said.
At the time of the restructuring, the company had been reporting weak financial results. In 2012, CEVA registered a loss before income taxes of US$872 million. In 2013, after CEVA Holdings was set up, the company narrowed this to a $60 million loss.
In the filed court documents the group of ex-employees and still serving employees accuse Apollo Global Management of restructuring the company in the spring of 2013 in such a way that they lost their stake.
At the time, they say, they owned 8.6 per cent of the shares in CEVA Investments Ltd (CIL), the parent of CEVA Logistics, through holding company CEVA Group, reported London's Air Cargo News.
The employees claim that they were induced to invest in CIL in 2007 when the company was first formed after Apollo's purchase of TNT Logistics for US$1.9 billion and later Eagle Logistics for $2 billion.
In 2013, the court papers say, the defendants instigated a debt-for-equity restructuring based on CIL's shares in CEVA Group having no value.
All equity in CEVA Group was then transferred to a new holding company, CEVA Holdings, for no consideration, giving "improper value and consideration to the employee investors".
Essentially this meant the employees lost all their shares in CIL in without compensation, they argue.
Along the way, the defendants are accused of providing employee investors with "false information" and inducing them to "waive claims".
"In light of Holdco's and CEVA's financial condition, we have been advised that it is unlikely that there will be any recoveries for the shareholders of Holdco in their capacities as shareholders," a letter sent in 2013 reads.
"The directors regret having to write to you with this information," the said.
At the time of the restructuring, the company had been reporting weak financial results. In 2012, CEVA registered a loss before income taxes of US$872 million. In 2013, after CEVA Holdings was set up, the company narrowed this to a $60 million loss.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
