Beneficient Co. Group LP
08/05/2024 | Press release | Distributed by Public on 08/05/2024 06:27
Material Event Form 8 K
Item 8.01 Other Events
On July 29, 2024, the Texas State District Court, Dallas County 134th Judicial District (the "Court") entered an order (the "Order") vacating the previously disclosed arbitration award against Beneficient (the "Company") in the aggregate amount of approximately $55.3 million in compensatory damages, including pre-judgment and post-judgement interest. As previously disclosed, on December 16, 2022, a former member (the "Claimant") of the board of directors of Beneficient Management, L.L.C. initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. On April 23, 2024, the sole arbitrator held that in terminating the Claimant's equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment and post-judgement interest (the "Arbitration Award"). The Order vacated the Arbitration Award in its entirety. The Company was also asked to pay arbitration-related costs in the amount of approximately $0.1 million.
The Court directed the parties to file motions requesting any further relief that may be available within twenty days of the Order. The Company intends to vigorously defend itself in the event the Claimant seeks any additional relief in connection with the Order.