Mark E. Felger, left, and Kaan Ekiner, right, of Cozen O'Connor. Courtesy photos Chancery Court Exercises Discretion in Setting Bond in a Case Involving Share Transfer Restriction
The Vice Chancellor's decision illustrates the court's discretion and, in this instance, common-sense approach to requiring a bond in the context of provisional relief.
October 30, 2024 at 09:55 AM
6 minute read
Contributors
In Leon v. Orlando, 2024 WL 2862452 (Del. Ch. June 5, 2024), Vice Chancellor Lori W. Will explained the process for setting the value, timing, and securitization of a bond in connection with a status quo order that restricted certain defendants from transferring shares of publicly traded stock. The Vice Chancellor's decision illustrates the court's discretion and, in this instance, common-sense approach to requiring a bond in the context of provisional relief. The underlying dispute involved determining the rightful manager of nominal defendant ARC Global Investments II LLC under 6 Del. C. Section 18-110. ARC was the sponsor of a SPAC, Digital World Acquisition Corp., which completed a business combination with Trump Media & Technology Group Corp. Defendant Orlando purportedly was the managing member and manager of ARC. Plaintiffs were members of ARC who claimed that they removed Orlando from those roles through a written consent.
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