Oversee.net states Moniker projections “horribly wrong”
Moniker buyout fell short of expectations.
Yesterday Oversee.net filed a heavily redacted document in support of its motion for summary judgment in its lawsuit with former employee Monte Cahn.
The motion is to dismiss a claim that Oversee.net owes Cahn money as part of a $13 million Management Incentive Plan (MIP).
Oversee.net makes a couple claims (pdf) regarding the plan in its latest filing. First, it states that Cahn was supposed to identify the plan’s participants each year (presumably other than just himself):
Undoubtedly, Cahn will now argue that, since the designation of participants was in his discretion, he could and would have designated himself as sole participant. That is not how an incentive plan works. As noted above, the MIP participants were to be identified at the beginning of the year. Cahn cannot now avoid the mutiny that would have ensued if he had designated himself as the sole Plan participant by remaining silent when the MIP was in place and appointing himself sole participant following he has left the firm. In short, Cahn’s failure to identify MIP participants when he was required to do so renders his First Claim for Relief speculative.
Second, the firm blames (in part) the economic recession for Moniker significantly underperforming its projections at the time the firm was purchased.
Cahn overstated Moniker’s anticipated growth trajectory and he agreed to accept the risk that his projections were wrong. In a turbulent economy, those projections proved to be horribly wrong, and that is why Moniker did not come close to hitting any of its Performance Goals.
The document redacts information regarding Moniker’s sale price and segment performance. Cahn earlier disclosed the price as $35 million, but it’s not clear if this was the final price.
