The Delaware Court of Chancery has allowed breach of contract claims to proceed against the manager of a Delaware LLC accused of diverting the firm’s assets to benefit himself and his friends.
Vice Chancellor Sam Glasscock III on Thursday said East Coast Miner investor MHS Capital had cleared initial hurdles to showing that Keith Goggin had violated the firm’s operating agreement by secretly using the firm’s bidding rights to lock up proceeds from a lucrative coal tract for himself and his “cronies” in a bankruptcy sale.
