LOS ANGELES, September 27, 2021--(BUSINESS WIRE)--Alex Davis, founder and CEO of Disruptive, one of the largest technology investment firms in the world, has won a significant court ruling against his stepfather, Kenneth Rickel.
The litigation in Los Angeles County Superior Court relates to a 2014 settlement agreement between the parties that resolved a dispute about Mr. Rickel’s departure from Disruptive. In September 2020, Mr. Rickel, dissatisfied with the deal he struck in 2014, attempted to extort millions more than he was owed under the settlement agreement by claiming it entitled him to a percentage of Mr. Davis’s entire Disruptive business in perpetuity, according to court filings. In response to Mr. Rickel’s threats, Mr. Davis sought declaratory judgment from the court that the settlement agreement entitled Mr. Rickel only to a percentage of Mr. Davis’s profits from a single fund, Disruptive Technology Solutions LLC or DTS, which was formed to invest in Palantir.
After extensive briefing and oral argument, the court on Thursday, September 23, rejected Mr. Rickel’s position in its entirety and ruled that "Rickel is entitled only to profits from DTS."
Mr. Davis is represented by Matthew S. Dontzin and David A. Fleissig of Dontzin Nagy & Fleissig. Mr. Dontzin said, "This is an important ruling for Alex Davis that fully vindicates what has been his position throughout this dispute – that the 2014 settlement agreement entitled Mr. Rickel only to an interest in a single fund – and not an interest in Mr. Davis’s entire business. Mr. Rickel, sadly, was trying to take advantage of his stepson’s success."
A link to Thursday’s ruling is here.
Dontzin Nagy & Fleissig is an elite team of trial lawyers based in New York with a 25-year history of delivering successful results in high-stakes disputes.
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