In a recent development, Declan Ganley, who established Rivada Networks, has been mandated by a New York court to make monthly payments of $20,000 (equivalent to £18,600) in order to repay a debt to a prior business associate. This is the newest event in an ongoing acrimonious legal battle with David Shuman, a New York-based investor and shareholder in Rivada Networks, a tech firm, concerning a defaulted debt judgement Mr Shuman won against him. This judgement was granted in 2021 and its worth, taking into account interest, is currently thought to be around $20 million.
To square up the default judgement, Mr Ganley has had no choice but to surrender a significant quantity of personal possessions. These range from several businesses to a pub located in Galway, four acres of land, as well as a variety of vehicles. Moreover, he was obliged to get rid of shares in Rivada, subsequently bought at auction by Mr Shuman. While Mr Ganley insisted that the value of these shares was ample to cover the debt, judge Jennifer Schecter dismissed this claim earlier this year.
In a verdict this March, she declared there was “no convincing proof” that endorsed this claim. It was last week that Judge Schecter, serving on the supreme court of New York, determined Mr Ganley had adequate income to make monthly payments to clear the debt sentence.
Lawyers working for Mr Shuman have requested the judge to basically sequester Mr Ganley’s Rivada salary as part of a plan to repay the debt in instalments. It was put forward by Mr Shuman’s legal team that Mr Ganley’s “stated salary of $360,000 was artificially minimised” and his credit card balance and legal fees were covered by his company. They concluded that since all of Mr Ganley’s room and board are catered for by his spouse, and his travel and legal costs are covered by Rivada, Mr Ganley has “no demands on his income whatsoever”.
Judge Schecter, in her order, stated that Mr Shuman’s lawyers “successfully demonstrated [Ganley] was indeed, drawing such income and he ‘is attempting to obstruct the judgement creditor by providing services without adequate remuneration’ in relation to the amount and method he is being paid as CEO of Rivada”.
Judge Schecter ruled, following Mr Ganley’s recent deposition, that it is fitting for him to pay Mr Shuman a sum of $20,000 monthly. This decision was based on Mr Ganley’s impressive wage, even after tax deductions, and after deducing some of his outgoings that are beyond his ‘reasonable needs’. [Declan Ganley’s plea that Rivada shares should foot his U.S. debt judgment is overruled by the court].
However, the judge did not adhere to Mr Shuman’s plea to put a freeze on all of Mr Ganley’s wealth, stating that the assertion ‘is devoid of enough factual and legal backing’.
She has commanded the payments to begin on the 1st of June, 2024, and to persist “until the judgment in this litigation is fulfilled”.
Contesting persistently in numerous submissions, Mr Ganley claimed that Mr Shuman should not be granted permission to chase the claim, reasoning that the debt has already been settled, and it is “standard law that a creditor cannot claim twice from the same debt”.
Speaking to The Irish Times, a representative for Mr Ganley stated: “We have given undeniable evidence, along with payments confirmations and attestations from various trustworthy third parties, indicating the debt that resulted in this default judgment was completely settled before Shuman resorted to seeking a judgment.”