N-able Loses Stockholder Pact Case as Judge Confronts New Twist

An N-able Inc. investor prevailed Thursday in litigation challenging its stockholder agreements with two major private equity firms, a dispute complicated by a recent landmark court ruling and an unusual legislative response.

A Delaware judge said the software company violated the state’s corporate laws with accords giving extensive veto and board rights to Silver Lake Group LLC and Thoma Bravo LLC. The decision by Vice Chancellor J. Travis Laster was his third this year to confront pacts handing the corporate reins to founders or preferred investors, including one involving Moelis & Co. that upended the popular governance strategy.

Thursday’s ...