• Parseghian v. Frequency Therapeutics, Inc.

    Publication Date: 2022-07-05
    Practice Area: Corporate Governance
    Industry: Biotechnology | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Fioravanti
    Attorneys: For plaintiff: Samuel T. Hirzel, II, Jamie L. Brown, Heyman Enerio Gattuso & Hirzel LLP, Wilmington, DE; Adam C. Ford, Matthew A. Ford, Ford O’Brien, LLP, New York, NY for plaintiffs.
    for defendant: Elena C. Norman, Young Conaway Stargatt & Taylor LLP, Wilmington, DE; Deborah S. Birnbach, Jennifer Burns Luz, Matthew T. White, Goodwin Proctor LLP, Boston, MA; Kevin R. Shannon, Jaclyn C. Levy, Callan R. Jackson, Potter Anderson & Corroon LLP, Wilmington, DE; Seth Goldman, Jacob H. Hupart, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., New York, NY for defendants.

    Case Number: D69871

    Breach of fiduciary duty claim against company CEO dismissed where there were no factual allegations regarding the actual steps the CEO purportedly took to block plaintiff stockholders' efforts to sell their shares or that the CEO was even aware plaintiffs were seeking to transfer their stock.

  • Stream TV Networks, Inc. v. SeeCubic, Inc.

    Publication Date: 2022-06-28
    Practice Area: Corporate Governance
    Industry: Investments and Investment Advisory | Technology Media and Telecom
    Court: Delaware Supreme Court
    Judge: Justice Valihura
    Attorneys: For plaintiff: Andrew S. Dupre, Brian R. Lemon, Steven P. Wood, Sarah E. Delia, Stephanie H. Dallaire, McCarter & English, LLP, Wilmington, DE for appellants.
    for defendant: Robert S. Saunders, Jenness E. Parker, Bonnie W. David, Lilianna Anh P. Townsend, Trevor T. Nielson, Skadden, Arps, Slate, Meagher & Flom LLP, Wilmington, DE; Eben P. Colby, Marley Ann Brumme, Skadden, Arps, Slate, Meagher & Flom LLP, Boston, MA for appellee.

    Case Number: D69864

    Board committee action approving omnibus agreement moving company's assets into a "NewCo" was invalid where company's charter required approval of one class of shareholders for "asset transfers."

  • In re Vaxart, Inc. Stockholder Litig.

    Publication Date: 2022-06-21
    Practice Area: Corporate Governance
    Industry: Pharmaceuticals
    Court: Court of Chancery
    Judge: Vice Chancellor Fioravanti
    Attorneys: For plaintiff: Stephen E. Jenkins, F. Troupe Mickler, IV, Ashby & Geddes, P.A., Wilmington, DE; Gregory V. Varallo, Bernstein Litowitz Berger & Grossmann LLP, Wilmington, DE; Jeroen van Kwawegen, Daniel E. Meyer, Margaret Sanborn-Lowing, Bernstein Litowitz Berger & Grossmann LLP, New York, NY; Gustavo F. Bruckner, Samuel J. Adams, Daryoush Behbood, Pomerantz LLP, New York, NY; Sascha N. Rand, Rollo C. Baker, IV, Silpa Maruri, Jesse Bernstein, Charles H. Sangree, Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY; Stanley D. Bernstein, Matthew Guarnero, Bernstein Liebhard LLP, New York, NY; William J. Fields, Christopher J. Kupka, Samir Shukurov, Fields Kupka & Shukurov LLP, New York, NY for plaintiffs.
    for defendant: Brock E. Czeschin, Andrew L. Milam, Richards Layton & Finger, P.A., Wilmington, DE; Riccardo DeBari, Renee Zaytsev, Thompson Hine, New York, NY; Matthew F. Davis, Abraham C. Schneider, Potter Anderson & Corroon LLP, Wilmington, DE; Douglas A. Rappaport, Kaitlin D. Shapiro, Elizabeth C. Rosen, Madeleine R. Freeman, Akin Gump Strauss Hauer & Feld LLP, New York, NY for defendants.

    Case Number: D69856

    Company's selection to a primate study of its proposed vaccine did not constitute material information to the stockholders' approval of amendments to the equity incentive plan that allowed directors to issue themselves options.

  • In re Geron Corp. Stockholder Derivative Litig.

    Publication Date: 2022-06-21
    Practice Area: Corporate Governance
    Industry: Biotechnology | Pharmaceuticals
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: P. Bradford deLeeuw, deLeeuw Law LLC, Wilmington, DE; Kip B. Shuman, Shuman, Glenn & Stecker, San Francisco, CA; Rusty E. Glenn, Shuman, Glenn & Stecker, Denver, CO; Brett D. Stecker, Shuman, Glenn & Stecker, Ardmore, PA; Brian J. Robbins, Craig W. Smith, Shane P. Sanders, Emily R. Bishop, Robbins LLP, San Diego, CA; Richard A. Maniskas, RM Law, P.C., Berwyn, PA for plaintiffs.
    for defendant: D. McKinley Measley, Sarah P. Kaboly, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE; Brett De Jarnette, John C. Dwyer, Cooley LLP, Palo Alto, CA; Ryan E. Blair, Cooley LLP, San Diego, CA for defendants.

    Case Number: D69855

    Although plaintiff shareholders' failure of oversight claim was likely to be subsumed by their fraudulent/misleading disclosure claim, the court stayed the action pending the outcome of a related securities action in another jurisdiction that would likely resolve genuine issues of material fact in the present case.

  • In re Global Discovery Biosciences Corp.

    Publication Date: 2022-06-14
    Practice Area: Corporate Governance
    Industry: Biotechnology
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Stephen C. Norman, David A. Seal, Potter Anderson & Corroon LLP, Wilmington, DE; Eric Landau, Travis Biffar, Ellenoff Grossman & Schole LLP, Irvine, CA for petitioners.
    for defendant: Corinne E. Amato, Mary S. Thomas, John G. Day, Christine N. Lafferty, Prickett, Jones & Elliott, P.A., Wilmington, DE; Marc P. Miles, Kristy A. Schlesinger, Shook, Hardy & Bacon L.L.P., Irvine, CA for respondent.

    Case Number: D69846

    Court affirmed validity of stockholder consent where evidence was insufficient to establish that purported equity issuances were valid and therefore diluted the ownership interest of the stockholders voting in favor of the consent.

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  • Oklahoma Firefighters Pension & Ret. Sys. v. Amazon.com, Inc.

    Publication Date: 2022-06-14
    Practice Area: Corporate Governance
    Industry: E-Commerce | Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Will
    Attorneys: For plaintiff: Blake A. Bennet, Cooch and Taylor, P.A., Wilmington, DE; Geoffrey M. Johnson, Scott+Scott Attorneys at Law LLP, Cleveland Heights, OH; Donald A. Broggi, Scott R. Jacobsen, Scott+Scott Attorneys at Law LLP, New York, NY for plaintiff.
    for defendant: Kevin R. Shannon, Berton W. Ashman, Jr., Mathew A. Golden, Potter Anderson & Corroon LLP, Wilmington, DE; William Savitt, Anitha Reddy, Adam M. Gogolak, Corey J. Banks, Zachary M. David, Wachtell, Lipton, Rosen & Katz, New York, NY for defendant.

    Case Number: D69849

    Plaintiff's request for additional books and records denied where it had failed to produce evidence permitting an inference that defendant corporation was engaged in antitrust and tax law violations, such that plaintiff's request merely constituted an improper fishing expedition.

  • Schoenmann v. Irvin

    Publication Date: 2022-06-14
    Practice Area: Corporate Governance
    Industry: Manufacturing | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Stacey A. Scrivani, Stevens & Lee, P.C., Wilmington, DE for plaintiff.
    for defendant: Joanna J. Cline, Christopher B. Chuff, Emily L. Wheatley, Troutman Pepper Hamilton Sanders LLP, Wilmington, DE for defendants.

    Case Number: D69850

    Direct corporate claims were equitably tolled under statute of limitations where plaintiff, who had superior information rights as member and manager, sufficiently alleged that controller had intentionally manipulated operations and financial records to conceal misconduct.

  • Goldstein v. Denner

    Publication Date: 2022-06-07
    Practice Area: Corporate Governance
    Industry: Biotechnology | Investments and Investment Advisory | Pharmaceuticals
    Court: Court of Chancery
    Judge: Vice Chancellor Laster
    Attorneys: For plaintiff: Kevin H. Davenport, John G. Day, Prickett, Jones & Elliott P.A., Wilmington, DE; R. Bruce McNew, Cooch & Taylor P.A., Wilmington, DE; Randall J. Baron, David T. Wissbroecker, Robbins Geller Rudman & Dowd LLP, San Diego, CA; Christopher H. Lyons, Robbins Geller Rudman & Dowd LLP, Nashville, TN; Brett Middleton, Johnson Fistel, LLP, New York, NY for plaintiff.
    for defendant: Matthew D. Stachel, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Wilmington, DE; Daniel J. Kramer, Geoffrey R. Chepiga, Daniel J. Juceam, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, NY; Stephen E. Jenkins, Richard D. Heins, Ashby & Geddes, P.A., Wilmington, DE; Tariq Mundiya, Sameer Advani, Richard Li, M. Annie Houghton-Larsen, Willkie Farr & Gallagher LLP, New York, NY for defendants.

    Case Number: D69839

    Non-exculpated fiduciary duty claims against directors survived dismissal where plaintiff pled sufficient facts to support inference that directors were financially and professionally aligned with activist investor/director who allegedly profited off insider information to the detriment of public shareholders.

  • 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.

  • Knight v. Miller

    Publication Date: 2022-05-10
    Practice Area: Corporate Governance
    Industry: Health Care
    Court: Court of Chancery
    Judge: Vice Chancellor Glasscock
    Attorneys: For plaintiff: Stephen E. Jenkins, Tiffany Geyer Lydon, Ashby & Geddes, P.A., Wilmington, DE; Gregory Mark Nespole, Daniel Tepper, Correy A. Kamin, Ryan C. Messina, Levi & Korsinsky, LLP, New York, NY for plaintiff.
    for defendant: Francis G.X. Pileggi, Cheneise V. Wright, Lewis Brisbois Bisgaard & Smith LLP, Wilmington, DE; Gary A. Orseck, Matthew M. Madden, Jason A. Shaffer, Kramer Levin Robbins Russell, Washington, D.C. for defendants.

    Case Number: D69809

    The court found that plaintiff's complaint that challenged equity grants made to directors would be reviewed under the entire fairness standard and withstood a motion to dismiss.