• Twitter, Inc. v. Musk

    Publication Date: 2022-09-27
    Practice Area: Mergers and Acquisitions
    Industry: E-Commerce | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Peter J. Walsh, Jr., Kevin R. Shannon, Christopher N. Kelly, Mathew A. Golden, Callan R. Jackson, Potter Anderson & Corroon LLP, Wilmington, DE; Brad D. Sorrels, Wilson Sonsini Goodrich & Rosati, P.C., Wilmington, DE; William Savitt, Bradley R. Wilson, Sarah K. Eddy, Ryan A. McLeod, Anitha Reddy, Noah B. Yavitz, Wachtell, Lipton, Rosen & Katz, New York, NY for plaintiff.
    for defendant: Edward B. Micheletti, Lauren N. Rosenello, Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, DE; Alex Spiro, Andrew J. Rossman, Christopher D. Kercher, Silpa Maruri, Quinn Emanuel Urquhart & Sullivan LLP, New York, NY for defendants.

    Case Number: 2022-0613-KSJM

    Corporate CEO had a reasonable expectation of privacy in his work email accounts where the evidence demonstrated that company officials could only access the CEO's accounts with his express permission or as otherwise legally required.

  • In re SwervePay Acquisition, LLC

    Publication Date: 2022-09-13
    Practice Area: Mergers and Acquisitions
    Industry: Financial Services and Banking | Investments and Investment Advisory | Software
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Peter J. Walsh, Jr., Nicholas D. Mozal, Potter Anderson & Corroon LLP, Wilmington, DE; Orion Armon, Cooley LLP, Denver, CO; Luke Cadigan, Cooley LLP, Boston, MA; Alexandra Leeper, Cooley LLP, Palo Alto, CA; Katelyn Kang, Cooley LLP, New York, NY; Bradley Levison, Carrie A. Herschman, Herschman Levison Hobfall PLLC, Chicago, IL for plaintiffs.
    for defendant: A. Thompson Bayliss, Stephen C. Childs, Abrams & Bayliss LLP, Wilmington, DE; David B. Hennes, Adam M. Harris, Alexander B. Simkin, Ropes & Gray LLP, New York, NY; Sarah M. Samaha, Ropes & Gray LLP, Washington, DC for defendants.

    Case Number: 2021-0447-KSJM

    Fraud claim arising from acquisition was not dismissed where sellers plausibly alleged that buyers overinflated the amount of monetizable revenue in the buyers' pipeline, which induced sellers into the transaction on the understanding they could hit contractual milestones for earnout payments.

  • In Re Carvana Co. Stockholders Litig.

    Publication Date: 2022-09-13
    Practice Area: Civil Procedure
    Industry: E-Commerce | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Christine M. Mackintosh, Rebecca A. Musarra, Grant & Eisenhofer P.A., Wilmington, DE; Ned Weinberger, Labaton Sucharow LLP, Wilmington, DE; Jason M. Leviton, Joel A. Fleming, Lauren Godles Milgroom, Amanda R. Crawford, Block & Leviton LLP, Boston, MA; Domenico Minerva, John Vielandi, David MacIsaac, Labaton Sucharow LLP, New York, NY for plaintiffs.
    for defendant: David E. Ross, Adam D. Gold, R. Garrett Rice, Ross Aronstam & Moritz LLP, Wilmington, DE; Brian M. Lutz, Gibson, Dunn & Crutcher LLP, San Francisco, CA; Colin B. Davis, Katie Beaudin, Gibson, Dunn & Crutcher LLP, Irvine, CA; John L. Reed, Ronald N. Brown III, Peter H. Kyle, Kelly L. Freund, DLA Piper LLP (US), Wilmington, DE, for defendants.

    Case Number: 2020-0415-KSJM

    Court denied defendant's motion to dismiss for lack of personal jurisdiction finding that defendant was the majority stockholder and controller over the company at the time the forum selection clause was incorporated into the articles of incorporation.

  • HUMC Holdco, LLC v. MPT of Hoboken TRS, LLC

    Publication Date: 2022-08-16
    Practice Area: Corporate Governance
    Industry: Health Care | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Michael Busenkell, Margaret F. England, Bradley P. Lehman, Gellert Scali Busenkell & Brown LLC, Wilmington, DE for plaintiffs.
    for defendant: Patricia L. Enerio, Jamie L. Brown, Heyman Enerio Gattuso & Hirzel LLP, Wilmington, DE; Christopher J. Sullivan, Nutter, McClennan & Fish LLP, New York, NY; Thomas A. Uebler, Joseph Christensen, McCollom D’Emilio Smith Uebler LLC, Wilmington, DE for defendants.

    Case Number: D69919

    Laches barred contract, fraud, and waste claims arising from the payment of management fees where rejection of claimant's request for books/records/information meant that it could no longer be "blamelessly ignorant" of any alleged wrongdoing and therefore the running of the limitations period was triggered.

  • In re Carvana Co. Stockholders Litig.

    Publication Date: 2022-07-12
    Practice Area: Corporate Governance
    Industry: Automotive | E-Commerce | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Nathan A. Cook, Block & Leviton LLP, Wilmington, DE; Christine M. Mackintosh, Rebecca A. Musarra, Grant & Eisenhofer P.A., Wilmington, DE; Ned Weinberger, Labaton Sucharow LLP, Wilmington, DE; Jason M. Leviton, Joel A. Fleming, Lauren Godles Milgroom, Amanda R. Crawford, Block & Leviton LLP, Boston, MA; Domenico Minerva, John Vielandi, David MacIsaac, Labaton Sucharow LLP, New York, NY for plaintiffs.
    for defendant: David E. Ross, Adam D. Gold, R. Garrett Rice, Ross Aronstam & Moritz LLP, Wilmington, DE; Brian M. Lutz, Gibson, Dunn & Crutcher LLP, San Francisco, CA; Colin B. Davis, Katie Beaudin, Gibson, Dunn & Crutcher LLP, Irvine, CA; John L. Reed, Ronald N. Brown, III, Peter H. Kyle, Kelly L. Freund, DLA Piper LLP (US), Wilmington, DE for defendants.

    Case Number: D69879

    Stockholders sufficiently pled director conflict and lack of independence by alleging numerous personal and professional ties stretching back decades between the directors and the company's controlling family.

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  • SDF Funding LLC v. Fry

    Publication Date: 2022-05-31
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: John G. Harris, Berger Harris LLP, Wilmington, DE; Douglas R. Hirsch, Ben Hutman, James Ancone, Sadis & Goldberg LLP, New York, NY for plaintiffs.
    for defendant: Douglas D. Herrmann, Emily L. Wheatley, Troutman Pepper Hamilton Sanders LLP, Wilmington, DE; Pamela S. Palmer, Kevin Crisp, Troutman Pepper Hamilton Sanders LLP, Los Angeles, CA for defendants.

    Case Number: D69830

    Plaintiffs could not pursue derivative claims that arose prior to the corporate defendant's acquisition of stock, where there were no exigent circumstances to warrant granting equitable standing or to look past the corporate forms to afford standing to the prior holding company's sole owner.

  • Coster v. UIP Co., Inc.

    Publication Date: 2022-05-17
    Practice Area: Corporate Entities
    Industry: Investments and Investment Advisory | Real Estate
    Court: Court of Chancery
    Judge: Vice Chancellor McCormick
    Attorneys: For plaintiff: Max B. Walton, Kyle Evans Gay, Connolly Gallagher LLP, Newark, DE; Michael K. Ross, Thomas Shakow, Serine Consolino, Aegis Law Group LLP, Washington, DC for plaintiff.
    for defendant: Stephen B. Brauerman, Elizabeth A. Powers, Bayard, P.A., Wilmington, DE; Deborah B. Baum, Pillsbury Winthrop Shaw Pittman LLP, Washington, DC; Neal C. Belgam, Kelly A. Green, Jason Z. Miller, Smith Katzenstein & Jenkins LLP, Wilmington, DE for defendants.

    Case Number: D69814

    Board was substantially justified in approving stock sale that diluted equal stockholder's interest, where it mooted that stockholder's legal action that posed a risk of triggering termination of the company's key contracts.

  • BET FRX, LLC v. Myers

    Publication Date: 2022-05-10
    Practice Area: Mergers and Acquisitions
    Industry: Investments and Investment Advisory | Pharmaceuticals
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Sean M. Brennecke, Klehr Harrison Harvey Branzburg LLP, Wilmington, DE; Jordan M. Rand, Klehr Harrison Harvey Branzburg LLP, Philadelphia, PA for plaintiff.
    for defendant: Samuel T. Hirzel, II, Jamie L. Brown, Heyman Enerio Gattuso & Hirzel LLP, Wilmington, DE; Eric R. Levine, Eric Aschkenasy, Eiseman Levine Lehrhaupt & Kakoyiannis, P.C. New York, NY for defendants.

    Case Number: D69806

    The court found that plaintiff's amended complaint failed to sufficiently plead most of its claims including breach of contract and breach of fiduciary duty.

  • Transperfect Global, Inc. v. Ross Aronstam & Moritz LLP

    Publication Date: 2022-03-29
    Practice Area: Corporate Governance
    Industry: Legal Services | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Frank E. Noyes, II, Offit Kurman, P.A., Wilmington, DE; Douglas Capuder, Capuder Fazio Giacoia LLP, New York, NY for plaintiff.
    for defendant: David E. Ross, Bradley R. Aronstam, Eric D. Selden, S. Michael Sirkin, Adam D. Gold, Benjamin Z. Grossberg, Ross Aronstam & Moritz LLP, Wilmington, DE; for defendants.

    Case Number: D69759

    The court held that subject matter jurisdiction could be exercised by Chancery Court because the order giving authority to the custodian was issued by Chancery Court. Further, the court held that plaintiff failed to state a claim upon relief could be granted. Plaintiff's motion to dismiss denied; defendant's motion to dismiss granted.

  • S'holder Representative Serv. LLC v. DC Capital Partners Fund II LP

    Publication Date: 2022-03-01
    Practice Area: Contracts
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Chancellor McCormick
    Attorneys: For plaintiff: Thomas A. Uebler, Joseph L. Christensen, Kathleen A. Murphy, Mccollom D’Emilio Smith Uebler LLC, Wilmington, DE for plaintiff.
    for defendant: Philip Trainer, Jr., Marie M. Degnan, Ashby & Geddes, Wilmington, DE for defendants.

    Case Number: D69728

    The court held that it had subject matter jurisdiction because the subject agreement was an instrument for the sale of stock, because it did not have discretion to decline jurisdiction, and because common law favored giving deference to plaintiff's choice of forum.