Matterport is appealing a lower court ruling that awarded former CEO Bill Brown $79 million over a provision that barred him from selling shares if the company went public.
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Matterport on Tuesday appealed a court ruling that found the company’s former chief executive was entitled to $79 million in compensation for issues arising from its 2021 initial public offering.
The leading 3D digital home scanning company filed a notice of appeal with the Delaware Supreme Court on Tuesday in a case that could challenge Ongoing sale to CoStar.
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Days earlier, Matterport shareholders voted overwhelmingly to approve the sale to CoStar. It sought to challenge a lower court ruling that found the company improperly blocked former CEO William Brown from selling his stock ahead of its 2021 IPO.
In late May, Vice Chancellor Lori W. Will ruled that Brown was entitled to collect funds from Matterport based on the company’s higher stock price when it went public.
Former Matterport CEO Bill Brown is entitled to recoup $79 million from the company he once led. Brown had sought to recover $141 million from the company, an amount based on the peak value of Matterport’s shares when it went public.
The comments come at a sensitive time for Matterport, which CoStar is seeking to acquire for $1.6 billion. CoStar Chief Executive Andy Florance told Inman this month that the sale was on track and was going through regulatory review. He made no mention of legal issues with Brown.
“We know that high-quality, easy-to-build 3D digital twins are the best way to experience real estate online. It is underutilized in commercial real estate and residential real estate,” Florence said.
Florence said he has no intention of making Matterport’s functionality available exclusively to real estate professionals who use Homes.com.
“We’ll make it available to anyone. Everybody,” Florence said. “What we’re doing is Homes Pro members, we just matterport their listings and generate floor plans. But anyone who wants to do matterport, that’s great. We think our win is by stimulating demand, on homes. This is achieved by installing Matterport.
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