Immunomedics Beats Founder’s $365 Million Revenue Sharing Suit

Immunomedics Inc.'s founder isn’t entitled to a share of the revenue of the company now owned by Gilead Sciences Inc., the Delaware Chancery Court ruled Monday.

Former Chief Executive Officer David M. Goldenberg’s revenue-sharing agreement with Immunomedics “was not intended to encompass unrelated parent-level businesses that an acquiror brought to the combined entity,” Vice Chancellor J. Travis Laster said for the Delaware Court of Chancery in a post-trial opinion.

The revenue-sharing provision of Goldenberg’s employment contract intended to compensate him only for revenue generated from businesses related to his scientific research, primarily the cancer drug Trodelvy, Laster said. ...