This Week in Chancery Court: Snap and Popwallet, Subnautica Game

Delaware’s Court of Chancery will hear post-trial arguments in a $250 million earnout suit tied to the postponed release of a popular underwater-survival game’s next installment. And it will consider Snap Inc.‘s motion to dismiss a lawsuit brought by a co-founder of Popwallet Inc., which the social media giant acquired, saying its stockholders were fraudulently induced into the 2021 deal.

Here’s what else is on the calendar for Delaware’s Court of Chancery and Supreme Court:

Monday: Orlando v. Digital World Acquisition Corp., Del. Ch., No. 2024-0264, oral arguments 1/5/26.

At issue: The ex-CEO of the blank-check company that combined with Donald Trump’s social media platform to bring it public is presenting his second request for sanctions and to hold in contempt his old corporation in a legal fee spat. Patrick Orlando‘s been entangled in multiple court fights related to Trump Media & Technology Group Corp. and the special purpose acquisition company it combined with, Digital World Acquisition Corp. DWAC says it has paid Orlando $18.1 million, the total undisputed amount of his legal fees, in compliance with a court advancement order. Orlando’s asking for a $50,000 daily fine in the motion to be considered in oral arguments, among other requests, and asserts that disputed fees primarily concern litigation brought by DWAC in Florida.

Court action: Magistrate Christian Wright hears oral arguments in Wilmington, Del.

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Wednesday: Handler v. Centerview Partners Holdings LP, Del., No. 269,2025, oral arguments 1/7/26.

At issue: A former partner at Centerview Partners Holdings LLC appealed a Chancery Court decision dismissing his claims that the firm’s founders defrauded him out of his equity stake after he started a rival company. David Handler alleged Centerview breached an oral partnership agreement by denying his stake as he left in 2022 to found Tidal Partners LLC. In a 2024 ruling, the Chancery Court found Handler’s title at Centerview was an honorific and he wasn’t entitled to the elite merger advisory firm’s financial records.

Court action: The Delaware Supreme Court hears arguments in Dover, Del.

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Thursday: Guerra vs. Snap Inc., Del. Ch., No. 2024-1009, oral arguments 1/8/26.

At issue: Wright will hear arguments to dismiss a lawsuit brought by Elias Guerra, a co-founder and securityholder representative of Popwallet, on behalf of former stockholders alleging Snap misrepresented how prepared it was for Apple Inc. privacy changes ahead of the acquisition. Snap bought the company for $20 million in Snap Class A stock and $5 million in cash. Snap says as a threshold matter, Guerra’s barred from pursuing claims in this court by the Securities Litigation Uniform Standards Act, which “prevent litigants from seeking to circumvent the requirements of the federal securities laws.” Also, his claims are “largely copied” from a proposed class action in California federal court where most alleged misrepresentations were deemed inactionable, it said. Snap’s $65 million settlement in that suit earned a federal judge’s preliminary approval.

Court action: Wright hears oral arguments in Wilmington, Del.

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Friday: Fortis Adv., LLC. v. Krafton, Inc., Del. Ch., No. 2025-0805, post-trial arguments 1/9/26.

At issue: A South Korean video game studio linked to Chinese tech giant Tencent and three Unknown Worlds Entertainment founders who allege the gaming group sabotaged the release of a franchise’s next installment will again argue before the court following a November trial. The former executives’ suit says Krafton Inc. held off the release of Subnautica 2 to avoid paying its makers up to $250 million in bonuses tied to certain revenue targets and pocket the cash itself. Krafton said the delay regarded having the sequel live up to gamer expectations.

Court action: Vice Chancellor Lori Will will hear post-trial arguments in Wilmington, Del.

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