ZLF successfully defends Molded Devices, Inc. against investment bankers

Molded Devices, Inc. (MDI) is a nation-wide manufacturer.  Over the last twenty years, MDI has undergone tremendous growth due to a number of strategic acquisitions.  In 2015, MDI was working with an investment banker, but terminated the arrangement for lack of results.  Within a year, another investment banker secured significant financing for MDI and negotiated two acquisitions.  The new investment banker was paid a success fee for their work.  However, the previously terminated investment banker, who admitted to performing no work on any of these three transactions, sought over $800,000 in fees from MDI.  MDI offered to settle the matter for $50,000 in order to avoid the expense of trial.  The plaintiff refused, and after a jury trial in Orange County, CA, the jury rendered a verdict of only $18,000 – less than the amount of MDI’s settlement offer.