The Delaware Court of Chancery has dismissed a derivative suit accusing the directors of California-based software company Hortonworks Inc. of hiding the firm’s troubled financial status from investors as they headed toward a capital raise to help the company pay its bills.

Chancellor Andre G. Bouchard on Wednesday said investor Chaile Steinberg had failed to show the futility of a pre-suit demand that the board initiate its own litigation over the incident, which caused Hortonworks’ stock to fall 37 percent in early 2016 on news that the company would be engaging in a secondary public offering.