LG Loses Again Over Firing Ad Tech Startup Alphonso’s Founders

An LG Electronics Inc. affiliate lost again in its bid to fire two founders of the ad tech startup it acquired, Alphonso Inc.

A trial court correctly determined that Zenith Electronics LLC wrongfully terminated the founders, according to a Delaware Supreme Court opinion Monday.

The Delaware Chancery Court ruled in January 2024 that the interim CEO of Alphonso, named by a board of directors controlled by LG, still had to abide by a stockholders’ agreement to use “reasonable efforts” to protect the founders’ rights. The interim CEO breached that clause of the agreement when the founders were terminated, Vice Chancellor ...