Kohlberg Ventures Defeats Founder Lawsuit Over Edtech Buyout

Kohlberg Ventures LLC prevailed in court Wednesday against a challenge by the founder of floundering education technology business Akademos Inc. to its private equity buyout.

A Delaware judge dismissed allegations that the transaction and earlier financing rounds shortchanged common stockholders in favor of Kohlberg, which held preferred shares and debt notes. The firm showed “patience far beyond what one might generally expect from a homerun-ardent venture capitalist” before offering a fair deal that salvaged Akademos along with its investment, the judge said.

Although both sides presented narratives that were plausible on their face, founder Brian Jacobs told a story about ...