This Week in Chancery Court: Bumble Board, Straight Path Appeal

Bumble Inc.‘s founder and her backers at private equity giant Blackstone Inc. will learn this week whether the Delaware Chancery Court will allow them to exit investor claims of insider trading.

Here’s a look at what else is happening in the Chancery Court and Delaware Supreme Court:

Monday: Roth v. Sotera Health Co., Del. Ch., No. 2022-1192, trial 7/7/25.

At issue: Vice Chancellor Lori W. Will previously determined a former Sotera Health Co. vice president, Kurt Roth, wasn’t entitled to severance benefits or an equitable accounting of his past shares in the health care service provider. Now the parties go to trial over remaining claims from Roth’s 2022 lawsuit alleging Sotera’s CEO forced him to choose between forfeiting equity and accepting a demotion and pay cut. Roth resigned instead, refusing to sign a release that was a condition for receiving severance under his employment agreement.

Court action: A three-day trial opens Monday in Wilmington, Del.

Sotera Health Beats Some of Former Executive’s Stock Claims

Tuesday: In re Bumble, Inc. S’holder Litig., Del. Ch., No. 2023-0130, ruling 7/8/25.

At issue: A special litigation committee of Bumble’s board argued last week to exit a consolidated lawsuit that it’s concluded is too weak to pursue through expensive litigation. Vice Chancellor J. Travis Laster ruled in 2023 that the lawsuit targeting Bumble founder Whitney Wolfe Herd and Blackstone could advance because the investors rightly doubted Bumble’s board could’ve acted independently from the private equity giant ahead of a September 2021 stock offering. Laster is now ready to rule on the committee’s motion to terminate.

Court action: Laster will deliver his bench ruling via teleconference.

Bumble, Blackstone Defend Stock Sales Disputed by Investors (2)

Wednesday: In re Straight Path Commc’ns., Inc. Consol. S’holder Litig., Del., 19,2025, oral arguments 7/9/25.

At issue: Whether the Chancery Court erred in ruling for IDT Corp. and founder Howard Jonas in shareholder litigation linked to the $3.1 billion sale of an affiliate, Straight Path Communications Inc., to Verizon Communications. The shareholders’ appeal seeking remand to assess damages is the latest chapter in a long-running lawsuit that went to trial in 2022. The Chancery Court criticized Jonas for manipulating an indemnification claim but concluded that his wrongdoing didn’t inflict any harm on minority investors.

Court action: The Delaware Supreme Court hears oral arguments in Dover, Del.

IDT, Founder Beat $10 Million Fee Bid in Straight Path Deal Case

Thursday: Gold v. SomaLogic, Inc., Del. Ch., No. 2023-1249, hearing 7/10/25.

At issue: Former SomaLogic Inc. directors and life sciences investor Eli Casdin seek to dismiss a lawsuit challenging the company’s merger with Standard BioTools Inc. SomaLogic founder Larry Gold said in a brief that Casdin and the board “ran a disloyal sale process and made disclosure violations to secure the Merger.” Standard BioTools announced last month that it was selling SomaLogic to Illumina Inc. for $350 million in cash, plus up to $75 million in milestone payments, in a deal expected to close next year.

Court action: Oral arguments will be held in Georgetown, Del.

SomaLogic’s $1 Billion Standard BioTools Merger Draws Challenge

Thursday: Kituwah LLC v. Schroeder, Del. Ch., No. 2024-1270, hearing 7/10/25.

At issue: Hotel executives who had sought to develop Sports Illustrated-themed resorts with an arm of the Eastern Band of Cherokee Indians want the Chancery Court to toss a lawsuit alleging they steered money for the venture to their other businesses. The tribal organization, Kituwah LLC, said in a brief that Experiential Ventures Hospitality LLC and its leaders are trying to “avoid the consequences of their involvement in the failure of Sports Hospitality Ventures, LLC.” Marketing giant Authentic Brands Group Inc., which owns Sports Illustrated, isn’t involved in the lawsuit.

Court action: Oral arguments will be held in Wilmington, Del.

Sports Illustrated Resorts Backer Sues Co-Investor Over Deal (2)

Friday: In re Kensington-QuantumScape De-SPAC Derivative Litig., Del. Ch., No. 2022-0721, settlement hearing 7/11/25.

At issue: Whether Laster will give final approval to a proposed $8.75 million settlement to resolve shareholder litigation that targeted QuantumScape Corp., its senior leaders, and the special-purpose acquisition company that took the lithium-battery maker public in 2020. The settlement comes amid federal claims in Delaware and California alleging QuantumScape misrepresented its products’ performance.

Court action: The settlement hearing will be held in Wilmington, Del.

Vivint, QuantumScape, MultiPlan, Others Get SPAC Stock Fixed Up