This Week in Chancery Court: Matterport, LG Electronics Appeals

The Delaware Supreme Court will consider appeals to overturn two Chancery Court decisions, one involving an affiliate of LG Electronics Inc. and another that awarded Matterport Inc.'s former chief executive damages in a stock dispute.

Here’s a look at the Chancery Court and Supreme Court calendars this week:

Monday: SPay Inc. v. P. Jeffrey Lucier Tr. & Gravitas Sec. Inc., Del. Ch., No. 2020-0540, phone hearing 2/24/25.

At issue: Stack Sports, which runs payment and logistics software platforms for sports leagues, claimed in a 2020 lawsuit that it was duped into buying Stack Media Inc. in 2017 by its founders, who fraudulently concealed dependence on a single large customer, mobile advertising company Mundo Media. The court dismissed claims against Stack Media and its ex-CEO in 2023. Vice Chancellor Nathan Cook now considers a motion for default judgment against one of the remaining defendants, Canadian investment bank Gravitas Securities Inc.

Court action: Teleconference.

Stack Sports Hits Stack Media With Fraud, Theft Suit Over Merger

Tuesday: PXP Prod. Co. v. MitEnergy Upstream LLC, Del. Ch., No. 2024-0668, oral arguments 2/25/25.

At issue: An affiliate of mining Freeport-McMoRan Inc. sued a US subsidiary of Mitsui & Co. last June, alleging the Japanese conglomerate evades environmental liabilities and well-maintenance costs in its oil and gas leases by placing its global assets beyond the reach of US regulators and creditors. Vice Chancellor Morgan T. Zurn has scheduled a hearing to consider PXP Producing Co.'s motion to appoint a receiver for the subsidiary, MitEnergy Upstream LLC; a motion to intervene; and the proposed intervenor’s motion to dismiss the amended complaint.

Court action: A hearing on the pending motions will be held in Wilmington, Del.

Freeport Unit Sues Mitsui Over Entity Scheme to Dodge Well Costs

Wednesday: Weird Sci. LLC v. Enochian Biosciences Inc., Del. Ch., No. 2023-0599, bench ruling 2/26/25.

At issue: Vice Chancellor Morgan T. Zurn will deliver a bench ruling on a motions to dismiss litigation over claims that Enochian Biosciences Inc.—now known as Renovaro Biosciences—breached an agreement allowing its former majority owner, Weird Science LLC, to participate in certain sales of registered securities to the public. Weird Science has alleged that Renovaro’s longtime legal counsel, K&L Gates LLP and firm attorney Clayton E. Parker, participated in the scheme.

Court action: Teleconference.

Enochian Accused of Trampling on Ex-Owner’s Stock Resale Rights

Wednesday: Lee v. Chordia, Del., No. 315,2024, oral arguments 2/26/25.

At issue: Delaware’s top court will consider an appeal seeking to reverse a Chancery Court post-trial decision finding that two of ad tech firm Alphonso Inc.’s founders shouldn’t have been terminated under the terms of an agreement with an LG Electronics Inc. affiliate that acquired it. The affiliate, Zenith Electronics LLC, argues in a brief that the trial court “contravened longstanding Delaware law to create new and incorrect jurisprudence around reasonable efforts requirements for at-will employment and the prevention doctrine.” The founders say in an answering brief that the trial judge prevented LG’s scheme “to eviscerate the contractually bargained-for rights of Alphonso’s minority stockholders, squeeze them out at a fraction of Alphonso’s true value, and seize unfettered control over Alphonso.”

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

LG Breached Contract in Firing Founders of Startup It Acquired

Wednesday: Matterport Inc. v. Brown, Del., No. 294,2024, oral arguments 2/26/25.

At issue: The high court will consider an appeal arguing the Chancery Court erred in a post-trial decision awarding Matterport’s former chief executive, William Brown, $79 million in damages in the stock dispute with his former company. Brown argues in a cross-appeal that the trial court didn’t calculate the damages correctly and failed to apply the right post-judgment interest rate.

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

Matterport Ex-CEO Wins $79 Million In SPAC Stock Lockup Suit

Wednesday: Lundberg v. Vivint Solar Inc., Del., No. 335,2024, oral arguments 2/26/25.

At issue: A former Vivint Solar Inc. in-house lawyer, awarded almost $300,000 in damages from the company after the Chancery Court found it breached agreements concerning his vested stock options and restricted stock units, has asked the high court to consider whether those damages were calculated incorrectly. The company argues in a brief that the appeal is “Lundberg’s latest effort to obtain a windfall profit.”

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

Ex-Vivint Solar In-House Lawyer Gets Damages in Delaware Court