BOCA RATON, FL (BocaNewsNow.com) — In the days before WiFi calling, you couldn’t watch television for seemingly more than half an hour without seeing an ad for “Magic Jack,” what was then a revolutionary dongle that — when plugged into your computer — would let you make telephone calls for free.
MagicJack’s founder Dan Borislow died in 2014 — at age 52 — from a heart condition. He lived, and died, in Palm Beach County.
In June of 2016, MagicJack acquired telecommunications company Broadsmart for $40m. A company called Galilee Acuisition then initated negotiations to buy MagicJack/Broadsmart. Galilee alleges that MagicJack reported that Broadsmart was a commercial success with big profits.
But Galilee, which claims it spent significant cash as it attempted to buy MagicJack, says that MagicJack didn’t reveal that Broadsmart was worth pennies on the dollar. From a complaint just filed in Palm Beach County Circuit Court: “The fair value of Broadsmart’s customer relationships, previously valued at $19.5 million, in fact had a fair value of only $4.4 million; (b) the fair value of Broadsmart’s “process know how” and “trade name,” which collectively were previously valued at $2.7 million, in fact had a fair value of only $1.5 million, and the fair value of Boradsmart’s “goodwill,” previously valued at $14.9 million, in fact had a fair value of $0.
Read the complete filing here. . Galilee Acquistion seeks damages in excess of $15,000, though the court filing suggests a claim of losses exceeding $2M as it attempted to buy MagicJack based on — what it claims — was bad information.
