A Delaware Chancery Court judge Monday blocked a fast-track appeal of his decision last month to green light derivative claims for insider trading by the directors of Fitbit, stemming from the technology company’s initial public offering in 2015.
In a 12-page order, Vice Chancellor Joseph R. Slights III stood by his Dec. 14 opinion, which found that two of Fitbit’s outside directors could potentially face liability for suspicious stock sales made by venture capital funds under their control. According to the lawsuit, the transactions came after the board learned of possibly catastrophic problems with Fitbit’s leading products, which accounted for about 80 percent of the company’s revenue.
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