WinView Founders Advance Challenge to Sports Betting Tech Merger

WinView Inc.'s founders can proceed with litigation over a series of increasingly harsh financing rounds involving former members of its board, followed by a merger into Engine Media Holdings Inc. that allegedly squeezed them out of the business, a Delaware judge ruled.

Vice Chancellor Sam Glasscock III let the case move forward Tuesday, saying it’s plausible the ex-directors abused their control over the mobile sports betting technology company to arrange a merger on terms that favored their interests as creditors, at the expense of stockholders like the founders.

Although fiduciary principles don’t require board members to act out of pure ...