CEO of ‘Patent Troll’ VirnetX Sued for Nepotism, Self-Dealing

The board of VirnetX Holding Corp. was hit with a Delaware lawsuit claiming its CEO “bilked millions of dollars out of the company” through years of self-dealing at the helm of the “notorious patent troll.”

“A patent troll like VirnetX would be expected to have very little in the way of salary and overhead,” the complaint says. “Unfortunately for the company and its stockholders, VirnetX is plagued by nepotism, waste, and corporate governance failures.”

The Chancery Court suit accuses CEO Kendall Larsen of paying his wife, son, and stepsons, who make up about a fifth of the 21-employee company, salaries ...