Appeals court says Damos got fair deal from Weitz

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The Weitz Co. paid former CEO Craig Damos more than a fair price for a little more than 9,000 shares he held in the company when it was sold in 2012 to OCI Holdings Ltd., according to an Iowa appeals court opinion that confirmed the ruling of Polk County District Judge Richard Blane.

 

Damos and Weitz parted ways in 2010, when the company was clawing its way out of the recession by focusing on key segments of the construction industry.

 

He retained shares in the company, and when it sold in 2012 he was one of two shareholders who dissented and the only shareholder who asked for an appraisal. Weitz agreed to pay $75.01 per share.

 

Damos said the shares were worth $215.73 each, but later lowered that to $198.84. After a three-day bench trial, Blane determined the shares were worth $70.81. Under Iowa law, Damos was not required to return the difference.

 

Damos appealed the valuation and, along with Weitz, objected to Blane’s determination that each side would have to pay their own attorneys’ fees. The appeals ruling upheld the valuation and the ruling on fees.

 

Appellate judges said Damos and Weitz also would have to split the costs of the appeal.