Cooley set to earn nearly $2m for work on Snapchat listing
Securities filing reveals fees for US firm on social media app's IPO
March 03, 2017 at 07:50 AM
3 minute read
The original version of this story was published on Law.com
Cooley stands to reap at least $1.8m (£1.5m) in legal fees and expenses for its work on the initial public offering (IPO) of of Snap, the parent company of photo-sharing and ephemeral messaging service Snapchat, according to a securities filing.
Shares of Snap surged in their market debut this week, with the listing valuing the company at $33bn (£27bn).
Snap, which was founded in 2011, is a longstanding client of Cooley and Palo Alto corporate and securities partner Eric Jensen. Jensen did not return a request for comment about the firm's work on behalf of Snap, nor did Cooley's global capital markets co-head David Peinsipp, who is also working on the float with partner Seth Gottlieb.
Cooley's early involvement for Snap was revealed in a 2013 suit filed by former Stanford University student Frank 'Reggie' Brown IV, who claimed that Spiegel and fellow Snap co-founder Bobby Murphy had cut him out of Snapchat, which shortened its name last year.
Brown alleged in court filings that the duo sent him a "threatening" letter from Cooley's Jensen.
The dispute settled confidentially in 2014, but in securities filings last month Snap revealed that it paid $158m (£129m) to Brown.
Quinn Emanuel Urquhart & Sullivan, which once advised plaintiffs bringing similar claims against the founder of Facebook, represented Snap in the litigation, while Cravath Swaine & Moore and Lee Tran & Liang took the lead for Brown.
Cooley also owns a sizeable slice of Snap stock. Snap's IPO prospectus notes that GC&H Investments LLC – an investment entity formed by Cooley partners and associates – owns "239,800 shares of our Class A common stock and 239,800 shares of our preferred stock", the latter of which will be converted into the same amount of "Class B common stock on the closing of this offering". With Snap's stock price closing on Thursday at $24.48 (£20), the value of Cooley's shares is now roughly $11.7m (£9.5m).
The IPO immediately makes a billionaire of Snap's Spiegel, a son of Munger Tolles & Olson partner John Spiegel in Los Angeles and Melissa Thomas, the youngest woman to ever graduate from Harvard Law School and a former tax lawyer at a predecessor firm of Pillsbury Winthrop Shaw Pittman.
In securities filings, Snap notes that Munger Tolles has received $649,314 (£530,000) in legal fees from the company during the past three years. Former Hogan Lovells partner Christopher Handman, hired by Snap as its general counsel in 2014, receives a base salary of $475,000 (£388,000) from the company.
Goodwin Procter is advising underwriters on Snap's IPO led by Allen & Co, Barclays, Credit Suisse, Deutsche Bank, JPMorgan Chase & Co, Morgan Stanley & Co and Goldman Sachs. Underwriters' counsel on IPOs are usually paid separately by the banks, which are well compensated for their roles handling the largest public listings.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDapper Labs $4M Settlement, $1.3M in Attorney Fees Reveal NFT Settlement Trend
4 minute readTrending Stories
- 1Decision of the Day: Judge Reduces $287M Jury Verdict Against Harley-Davidson in Wrongful Death Suit
- 2Kirkland to Covington: 2024's International Chart Toppers and Award Winners
- 3Decision of the Day: Judge Denies Summary Judgment Motions in Suit by Runner Injured in Brooklyn Bridge Park
- 4KISS, Profit Motive and Foreign Currency Contracts
- 512 Days of … Web Analytics
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250