A New York federal judge on Tuesday dismissed a lawsuit accusing the chancellor of Delaware’s Chancery Court and a court-appointed custodian of stifling the free speech rights of a TransPerfect Global Inc. employee in connection with the forced sale of the profitable translation-services company.
In a nine-page opinion, U.S. District Judge Vernon S. Broderick of the Southern District of New York cited the Younger abstention doctrine in declining to exercise jurisdiction over the case. Broderick said that allowing the case to continue in federal court would interfere with parallel litigation in the Delaware Court of Chancery, where Chancellor Andre G. Bouchard in 2015 ordered TransPerfect’s sale after finding that its corporate governance structure was hopelessly deadlocked.
