 |
 |
||
|
|
||
|
|
||
|
|
|||
|
The Gazette , Friday, November 16, 1990 NORAND MANAGERS WIN MULTIMILLION-DOLLAR SUIT
A Linn County District Court jury Thursday made a multimillion-dollar award to 20 past and present executives of Norand Corp. in Cedar Rapids from the firm's former owner, Pioneer Hi-Bred International of Des Moines. Tom Riley, the employees' attorney, said the jury's award would amount to $2,810,120, plus $575,119 in interest, or a total of $3,385,239. But Pioneer attorney John Hintze, in a news release, listed the net amount at $2.5 million, about the same as Pioneer made in a settlement offer in late October before the case went to trial. The exact judgment will be calculated by the court. The suit was filed nearly two years ago by past and present Norand executives who contended the company denied them more than $11 million they claimed was due when Pioneer sold Norand to a division of Donaldson, Lufkin and Jenrette of New York. The executives said they should get the money under a convertible debenture plan Pioneer established in 1984 to attract and retain management personnel. The plan, similar to a stock-option purchase program, called for the entire amount of the debentures to be convertible to non-voting common stock upon the sale of Norand, the suit claimed. Norand, which makes portable data systems, was sold in October 1988, with another division sold earlier that year at combined price of about $90 million, making the fair-market value of each stock share about $102, the suit alleged. Pioneer had contended it had invested $100 million in Norand and had not recovered about $25 million of that investment when the company was sold, making the stock worth less than what the employees had agreed to pay for it. Some of the employees purchased stock-ownership rights at $28.50 per share; others at $46.50. Following the two-week trial before Judge William Thomas, the jury's job was to set the per-share value. After about two days of deliberation, jurors returned a verdict at 10 a.m. Thursday, setting the per-share value of the stock at $58.85. The executives' case expert testified the stock was worth between $96 and $104 a share, based on the ale price, while Pioneer's expert put the stock's worth at $15 to $17 per share, based on the formula that the stock-option plan required to be followed. Another Pioneer attorney, Guy Cook of Des Moines, said no decision has been made regarding a possible appeal. "It's difficult to say (whether to appeal) until the final calculations are made, and there are some legal matters the court will have to take up. We won't make any decisions until those are done and the court issues its orders," Cook said. Cook indicated another factor in considering whether to appeal might be the similarity between Pioneer's settlement offer and the award - according to Pioneer's calculations. Many of the 20 plaintiffs no longer live in the area. Of the few who still do, the Gazette was able to contact one, who had no comment. The executives included George Chadima of Cedar Rapids, who co-founded the company in 1968 and sold it to Pioneer in 1976 for a reported $2 million. Tom Riley Law Firm, P.L.C.
Phone: (319) 363-4040
Home // Firm Overview // Attorneys // Practice Areas // Offices The determination of the need for legal services and the choice of a lawyer are extremely important decisions that should not be based solely upon advertisements or self-proclaimed expertise. This disclosure is required by rule of the Supreme Court of Iowa. A description or indication of limitation of practice does not mean that any agency or board has certified such lawyer as a specialist or expert in an indicated field of law practice, nor does it mean that such lawyers is necessarily any more expert or competent than any other lawyer. All potential clients are urged to make their own independent investigation and evaluation of any lawyer being considered. This notice is required by rule of the Supreme Court of Iowa. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Copyright © by Tom Riley Law Firm, P.L.C. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. |
