Sep 07, 2023
Litigation Practice Group Leader and Partner Jared Miller’s recent trial win in the U.S. District Court for the Middle District of Georgia is featured in the article, “Middle District Awards Over $1.3M to Shareholders in Dissenters' Rights Case Over Pre-Revenue Corporation” published in The Daily Report on January 2, 2024.
Jared represented three shareholders of Abeome Corp., a research company that develops monoclonal antibodies used to treat cancer and autoimmune diseases. The three shareholders, who collectively held around 6% of the company’s total shares, voted against a sale of Abeome’s assets and a joint venture to form a new company. When those transactions were approved by the majority of Abeome’s other shareholders, the firm’s clients invoked their rights under Georgia Dissenters’ Rights Statute (O.C.G.A. § 14-2-1301 et seq.), which allows shareholders of corporations to recover the value of their shares if they dissent from certain corporate transactions.
Abeome offered 15 cents per share, but the dissenting shareholders believed the fair value of the shares to be higher. Abeome’s refusal to pay the higher price demanded by the firm’s clients triggered a judicial appraisal of the shares. Ultimately, Federal Judge Clay Land determined that the fair value of the biotech startup was over $21.3 million, amounting to 56 cents per share, and awarded the three shareholders more than $1.3 million.
In addition to Jared Miller, Parker Hudson’s litigation Of Counsel David Gallo represented the minority shareholders.