Cascading Errors
The mass of summonses was because there were a lot of people pissed at me. Most underwriters spread the risk around. So we had one primary underwriter, and 7 others who were also selling shares, including, I'm proud to say, Goldman Sachs. I have to admit to a certain pride at being sued by an institution of that level of prestige. It made me feel that I had hit the big time.
However, one truism for an legal matter is they move with glacial slowness, particularly at the corporate level. Much more personal matters intruded earlier.
His Honor sat behind his desk, as a decorative stenographer took notes. Bryson Coopersmith was representing the Slut, who was in attendance, and he was in rare form. "His actions were deceptive and detrimental to the well being of my client. He specifically sold his
appreciating
assets simply to deny
my
client her legitimate share of community property. I have here a dozen examples of what a successful tech IPO is expected to appreciate in its first three months..."
I tuned him out as I examined Roland Thurman Esq. He was sitting in front of the judge, his gray hair a wispy halo around his head. His glasses were resting on top of his head, his chin lying on his chest and his hands folded upon his tweed enshrouded paunch. I kept wanting to kick him awake, but I suppressed the impulse. I had enough on my plate without facing assault charges. From what the last month had been like, it wouldn't be surprising.
"...and then, to top it off, he returned a signed divorce decree along with all the shares." he wound down.
It was true, and almost made me want to drop Mr. Thurman as my counsel. We read over the divorce decree three times and by the Wednesday after she had served me, Thurman made me not only sign her decree, but forced me to buy up 500,000 shares of Ipswitch Inc to give to my 'darling wife'. Luckily Prathee wasn't home because I tied one on right after I clicked the purchase and transfer order.
The Judge looked askance at Mr. Coopersmith. "Aren't they the papers your own client had served upon Mr. Reynolds?"
"Exactly your Honor." Thurman snoozed from his chair.
"Sir, they were served under the current conditions of the company, not after Mr. Reynolds crippled the company with his illegal actions."
"Not illegal. It is a civil matter. And as Mr. Coopersmith knows, IPO investments, particularly in a tech company, are highly speculative..."
When I had sold the shares, I had 'hit', actually 'made' the top of the market. Our initial price was $6 a share and we had gained a dollar per share when I sold. So I realized 7 million dollars. My attorney, God damn him, convinced me that I should repurchase 500,000 shares of Ipswitch Inc to fulfill the divorce decree. But by that time, the shares had dropped to $2.5 a share. So instead of the $3.5 million she thought she would get, she got $1.25 million in share price plus another $500,000 in real estate, furniture and accounts. She had specified a number of shares as community property, not a particular value. Much more then she deserved, in my opinion. But suddenly, she had the difficulty of arguing how giving her exactly what she wanted was now a BAD thing. It was a very bittersweet moment. Save a million but give the Slut the shares she so desperately wanted.
Of course, this decision totally reversed my stance on keeping Andrew from getting his hands on the company, something I was foursquare against. Thurman had talked to me about this at length before this meeting. "Look Jim. You are already out. What does it matter to you who is in charge? This lets you keep your money and if what you say is true about Mr. Schwartz, they'll rue the day themselves." There was a nagging uncertainty in my gut about that, but I grudgingly decided to sign.
The large sheaf of papers thwaped on the judge's desk. "What's this?" he asked.
"If I don't miss my guess," Thurman said, without opening his eyes, "that is Mr. Reynold's theatrically offered rebuttal to 'manipulation and deceptiveness'. You'll find records of maxed out credit cards to the tune of $50,000 for clothing, jewelry purchases and cash advances made by Mrs. Reynolds on the day after her husband found out about her infidelity. So, my question to Mr. Coopersmith is if he is offended by a spouse making arbitrary and fiscally harmful decisions upon the other spouse at the last minute in principle, or only when my client does it?"
"Your honor!" Bryson protested.
"He has a point, Counselor. You're asking to overturn your own settlement."
There was more arguing, but nothing further was decided. Lawyers!
Leaving with Mr. Thurman, I asked "Do you think we'll get away with this?"
"Hell no! This is California. If you want fair, get divorced in Ohio next time. But now the onus is on them and it's likely they'll get less then the half of what they are asking. Judges are human...occasionally. They sometimes reward clever tricks and earned comeuppance if it's legally justifiable." He flicked a look at his watch and hefted his briefcase. "I have to get some depositions, so I'll talk to you later." That was too bad. I wanted to discuss some other things that Allie had neglected to put in her divorce decree.
I was considering whether to bring some KFC home when her cloud of perfume announced her presence. "Hello Allie." I didn't need to mention that both of our lawyers would have kittens if they caught us having a normal conversation together. But what was the chance I'd be having a normal conversation?
"Jimmie."
"What do you want?" My patience was limited, but I had to admit to a certain curiosity. There was a small part of me that hoped she'd come to regret her decision, that she felt she made a terrible mistake. Admitting that would be soothing to my soul. I even wanted her to want to reconcile. Oh, don't get me wrong; I wanted it so I could crush her hopes...mostly...I think. The wistful memories of days gone by and my blue balls were conspiring to make me consider irrational options. "And don't call me that."
"Okay." She quirked a grin. "MEESter REEnalds, I haven't talked to you in forever."
Snorting with laughter, my tension dropped about two notches, which was no doubt her intention. She was still savvy and she knew me reasonably well. She must have if she could pull the wool over my eyes in so total a fashion. I had to watch her, but I wanted some answers to my questions. I pulled my iPhone out of my pocket, and punched in my code, checking my calendar. "I don't have to be back at work until four...ever. Want to grab a coffee?" She nodded guardedly, but with a certain amount of anticipation, or so I thought.
We retired to one of the courtyard cafes and found a table in an isolated section. She wore a nice silk blouse which I hadn't seen before. It was a chaste looking thing. Hiding her round heeled nature was probably sound legal strategy. "That's a nice blouse." I tried to start casually but she could see the clench in my jaw as I said it.
She sighed. "This is all fucked up. I know what you are thinking and you're partly right. You really caught us off guard. We didn't know what you were going to do; if you were filing restraining orders or had a process server coming to our place the next day, so we were scrambling ourselves. Which meant," she grimaced, "that I made sure I had enough stuff to live off of for a while."
"Walmart was having a sale." I said dryly. "You didn't need to go to Sax. But I understand your feelings now."
"You do?"
"Yes. Andrew has a bad habit of not paying for his pussy which is why he's still single."
Her breath hissed inward. "That was uncalled for. We're discussing marriage."
"Well, it makes me feel better that you aren't just throwing a perfectly good marriage away for some meaningless sex. So what was your game plan?"
Looking into the foam of her mocha crappachino (sic), Allie mustered her thoughts. "It wasn't supposed to be like this. You were supposed to finish up Ryleh, the company was supposed to go through the roof. We'd argue a bit more, I'd file for divorce and after we...I mean you got a chance to get over the hurt, I'd hook up with Andrew openly and we could go on with life without ruining your business relationship or the company. I didn't want to hurt you more then necessary. Andrew didn't either."
"Yeah sure. He's a prince. And when did you two start fucking?"
"That...developed. Look, does it matter? I don't want to get into that. Andy is a people person like me. We're...compatible in ways that you and I weren't."
"It matters to me. Because it seems that your plan involved fucking him until all this happened. And I agree. You're both cheaters. Sounds like the stress of the IPO was a nice excuse for a divorce. You didn't draw up that proxy card for something months from now. I recall I used to be the 'package'. So...what happened to us?"
