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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/05\/17\/freshly-shareholders-including-insight-partners-sue-nestle-for-failing-to-make-earnout-payments\/<\/a><\/br> Former investors of food delivery startup Freshly are suing <\/span>Nestl\u00e9 USA<\/span>, which <\/span>acquired the company<\/span><\/a> in 2020 for up to $1.5 billion.<\/span><\/p>\n The shareholders allege that <\/span>Nestl\u00e9<\/span>\u00a0failed to make earnout payments to Freshly shareholders pursuant to the merger agreement, according to <\/span>Law.com<\/span><\/a>. Per that agreement, as reported by TechCrunch at the time of the acquisition, Nestl\u00e9 had agreed to pay <\/span>$950 million plus potential earnouts of up to $550 million based on future growth.<\/span><\/p>\n Insight Partners, White Star, Highland Capital Partners, Slow Ventures and others were among those participating in the lawsuit as part of a group called Shareholder Representative Services LLC.<\/span><\/p>\n Bloomberg Law reported<\/a> that the lawsuit, which is not publicly available, alleges that <\/span>Nestl\u00e9 pressured Freshly founder Michael Wystrach \u201cto step down after the transaction \u2013 rather than admit he was being forced out \u2013 to avoid triggering nine-figure payments to the former shareholders.\u201d<\/span><\/p>\n
\nFreshly shareholders, including Insight Partners, sue Nestl\u00e9 for \u2018failing to make earnout payments\u2019<\/br>
\n2023-05-17 21:46:24<\/br><\/p>\n