This Week in Chancery Court: Musk, J&J Appeals, Coinbase, Novo

Delaware’s highest court this week takes up appeals of Chancery Court rulings against Tesla Inc. and Johnson & Johnson, which could alter the landscape for executive pay and M&A deals.

The Chancery Court will see disputes involving Coinbase Global Inc. and Elliott Investment Management, and a settlement over technology used in the oral version of the diabetes drug Ozempic. Let’s look at highlights from both courts’ calendars:

Monday: Grabski v. Andreessen, Del. Ch., No. 2023-0464, oral arguments 10/13/25.

At issue: Coinbase board members, including CEO Brian Armstrong and venture capital titan Marc Andreessen, have spent two years battling claims they dodged $1 billion in losses by dumping nearly $3 billion in stock around its public listing. After a judge let the insider trading lawsuit move forward, a special committee of the crypto giant’s board paused the litigation, conducted an investigation, and then moved to end the case. The shareholder leading the lawsuit argues the internal probe was plagued by pervasive conflicts of interest around Andreessen’s business empire, especially his ties to another director and Wilson Sonsini Goodrich & Rosati PC, the law firm that led the investigation.

Court action: Oral arguments on the motion to terminate the litigation will be held in Wilmington, Del.

Coinbase Insiders Lose Bid to Escape Investor’s Stock Dump Suit

Monday: Abraham v. Am. Mart Co. LLC, Del. Ch., No. 2023-0865, oral arguments 10/13/25.

At issue: American Mart Co. LLC wants to exit investor litigation alleging minority shareholders were forced out of the Wirtz family’s stake in Breakthru Beverage Group LLC, a top US liquor wholesaler. The investor filed the August 2023 lawsuit “as a thinly veiled attempt to get a second chance at an appraisal of his stock” after failing to meet certain deadlines, according to the company’s brief. The transaction at the lawsuit’s heart was the buyout of American Mart Corp., a holding company controlled by the family that owns the NHL’s Chicago Blackhawks, in 2022 by American Mart Co., a newly formed entity. Wirtz family members who served on the American Mart Corp. board aren’t named as defendants.

Court action: Oral arguments on the motion to dismiss will be heard in Georgetown, Del.

Wirtz Intermediate Holding Company Restructuring Draws Lawsuit

Monday: Hecate Holdings LLC v. Repsol Renewables N. Am., Inc., Del. Ch., No. 2024-0928, oral arguments 10/13/25.

At issue: The dispute over the ownership of Hecate Energy Group LLC was settled just as two renewable energy companies, Hecate Holdings and Repsol Renewables, were set for trial in January. However, Repsol now alleges Hecate and its lawyers at Winston & Strawn LLP engaged in misconduct and created a conflict of interest over a joint venture company. The law firm seeks to dismiss Repsol’s claims.

Court action: Oral arguments on the motion to dismiss will be held in Wilmington, Del.

Repsol Hit With Buyout Lawsuit Over Hecate Renewables Business

Tuesday: Eller Assocs., Inc. v. SRP Cap. Advisers LLC, Del. Ch., No. 2025-1095, teleconference 10/14/25.

At issue: Vice Chancellor Bonnie W. David will consider pending motions in a dispute where Paul Singer’s Elliott Investment Management alleges a Texas-based private equity firm, Stronghold Investment Management, has been charging excessive expenses to oil and gas-focused private equity funds. Elliott seeks partial summary judgment, expedited proceedings, and a status quo order. Separately, Elliott has filed a books-and-records demand seeking access to internal Stronghold files to investigate the expenses it said were inflated by tens of millions of dollars.

Court action: Teleconference.

Singer’s Elliott Escalates Battle With Texas Private Equity Firm

Wednesday: In re Tesla, Inc. Derivative Litig., Del., No. 534,2024, oral arguments 10/15/25.

At issue: The case that’s dominated the corporate law conversation for well over a year finally gets an airing before the high court. Musk and Tesla are fighting for the multi-billion compensation package the electric-vehicle maker offered him in 2018 for being CEO. Chancellor Kathaleen St. Jude McCormick initially voided the deal in January 2024, then rejected it again at the end of that year following a new shareholder vote. The current value of the 2018 pay package is $125.3 billion, according to the Bloomberg Billionaires Index. Delaware corporate law amendments drafted in response to complaints about Chancery Court opinions involving Musk and other powerful business leaders will come before the justices next month.

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

Tesla Investor Who Got Musk Pay Tossed Fires Back at His Appeal

Wednesday: Johnson & Johnson v. Fortis Advisors LLC, Del., No. 490,2024, oral arguments 10/15/25.

At issue: The pharmaceutical giant is appealing an order to pay $1 billion in damages for breaching merger agreements to prioritize a surgical robot in development when it acquired Auris Health Inc. for $3.4 billion. Vice Chancellor Lori W. Will held J&J liable for “almost immediately” breaking its promise to prioritize regulatory approvals for the deal’s flagship product. Over $2 billion in earnout payments hinged on the regulatory process.

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

J&J Loses $1 Billion Court Ruling on Surgical Robot Deal (3)

Friday: In re Emisphere Techs., Inc. S’holders Litig., Del. Ch., No. 2021-0025, settlement hearing 10/17/25.

At issue: Vice Chancellor Nathan A. Cook must give final approval to a $32 million settlement to end litigation over Novo Nordisk AS‘s $1.8 billion acquisition of technology used in the oral version of the diabetes drug Ozempic. The proposed deal would resolve claims that Lionsgate chairman Mark Rachesky exploited his control of Emisphere Technologies Inc. to force a sale that steered value to insiders. The Danish drug giant wasn’t named as a defendant. The attorneys who represented the Emisphere shareholders leading the litigation seek a $8.3 million fee award. One class member, IsZo Capital LP, objects to the settlement.

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

Novo Agrees to $32 Million Pact Ending Ozempic-Related Deal Case

—With assistance from Mike Leonard and Bloomberg Law Automation.