Juul Faces Skeptical Delaware Judge in New Bailout Challenge (1)

A Delaware judge appeared reluctant Wednesday to set precedent in an investor lawsuit challenging the rescue financing that allowed Juul Labs Inc. avert bankruptcy over its marketing practices.

Vice Chancellor Nathan A. Cook pressed an attorney for the vaping company to show previous Delaware decisions regarding senior executives and demand futility, then sparred with the investors’ lawyer over how to consider previous litigation challenging the financing.

Juul seeks to dismiss the lawsuit in Delaware Chancery Court that echoes previous claims that hotel billionaire Nick Pritzker, venture capitalist Riaz Valani, and other board directors exploited a $1.9 billion debt-to-equity conversion amid ...