Late fireworks in the Shiffman v Sleeping Duck trial
The court saw heated cross examinations ahead of a pause before closing arguments are heard later in November.
When the relationship between startup founders and an investor turns sour, things can get messy quickly. But if the closely watched court case between Melbourne entrepreneur and investor Adir Shiffman and his portfolio company Sleeping Duck is anything to go by, the cost of not keeping things cordial can run high. And put more on the line than just money.
The trial, which has had no shortage of twists and turns, is now on pause for four weeks before closing arguments are heard later in November.
In cross examinations week, the court heard that Shiffman offered to buy out the company, and that Sleeping Duck also had some other offers to buy it, including one that got close. But all offers were rejected by the founders, Selvam Sinnappan and Winston Wijeyeratne.
The court was also introduced to minority investor Prateek Bandopadhayay, brought into the picture by the founders through an ESOP scheme (and diluting Shiffman’s holding) that Shiffman alleges he was unaware of. Bandopadhayay is highly regarded by the founders, and has been lent funds by the company on an interest free basis, and with no expectation they should be paid back.
