In a significant legal maneuver, Quinn Emanuel Urquhart & Sullivan LLP has petitioned a New York state appeals court to secure $34 million in assets from Desktop Metal Inc. The request aims to ensure the firm recuperates nearly $29.8 million in legal fees owed following the acquisition of Desktop Metal by Nano Dimension Ltd., which closed on April 2.
Quinn Emanuel represented Desktop Metal in a merger dispute against Nano, where they alleged breaches of the merger agreement. The Delaware Chancery Court, in a judgment last month, noted that Nano engaged in delaying tactics and violated a “hell-or-high-water” clause, thus complicating the merger’s approval process by the Committee on Foreign Investment in the United States. The court mandated the completion of the merger, which has since been finalized.
The law firm proposed half-rate hourly billing to Desktop Metal during its initial engagement, under the condition of a 120% payback on success. Given the outcome, Quinn Emanuel asserts they are owed over $29.7 million plus further fees and interest. To secure payment, especially given Desktop’s jeopardized financial state, an order of attachment is being sought to entangle Desktop Metal’s manufacturing, equipment, and intellectual property assets up to $34 million.
Concerns have arisen from Quinn Emanuel as they predict challenges in retrieving funds if Nano proceeds with divesting Desktop Metal’s assets. Despite invoking the agreement’s arbitration clause, the firm argues that protracted proceedings could leave the assets beyond reach, reinforcing the need for immediate legal intervention.
Presently, Quinn Emanuel v. Desktop Metal Inc., N.Y. Sup. Ct., continues to evolve without public feedback from Desktop Metal. For detailed coverage and ongoing updates, the case remains under public and legal scrutiny.
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