Alphabet’s Mandiant Beats $1.2 Billion FireEye Sale Challenge

Alphabet Inc. unit Mandiant Inc. and former members of its board defeated investor litigation in Delaware over the $1.2 billion private equity spinoff of its FireEye Inc. cybersecurity business.

Chancellor Kathaleen St. J. McCormick threw the case out Monday, rejecting claims that the sale to Symphony Technology Group violated a law requiring shareholders to approve any deal for “substantially all” of a company’s assets. Though there’s no bright-line rule for what counts as “substantially all,” it’s clear the transaction didn’t gut Mandiant or change its basic nature, the judge said.

“Even crediting plaintiff’s description of the FireEye business as the ...