This Week in Chancery Court: Skechers Jets, Skillz, Pioneer

Skechers USA Inc.'s win in the Delaware Chancery Court over an investor’s complaint about the use of its corporate jets is set for review by the state’s top court.

Here’s a look at the Chancery Court’s schedule this week:

Tuesday: Hanna v. Paradise, Del. Ch., No. 2024-0228, oral arguments 1/7/25.

At issue: A shareholder sued Skillz Inc. founder Andrew Paradise and scores of corporate insiders, saying they manipulated the gaming platform’s share price in order to save tens of millions of dollars dumping stock when they knew the company was about to reveal bad news. The March 2024 lawsuit initially included former NBA All-Star Luol Deng among the defendants, but the plaintiff has since dismissed him, along with dozens of others, according to a filing. Paradise and the remaining defendants have asked the court to dismiss the complaint and its “baseless assumptions,” according to a brief.

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

Skillz Founder, Former NBA Star Sued Over Insider Trading Claims

Wednesday: Conte v. Greenberg, Del., No. 76,2024, oral arguments 1/8/25.

At issue: A Skechers shareholder is asking Delaware’s highest court to overturn a Chancery Court decision that rejected claims the footwear company’s board failed to police excessive personal use of its two planes by CEO Robert Greenberg, his two sons, and COO David Weinberg. The complaint “was only one stockholder’s personal preferred course of action,” the executives said in an answering brief.

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

Skechers CEO, Board Win Lawsuit Over Personal Use of Company Jet

Thursday: Sjunde AP-Fonden v. Activision Blizzard Inc., Del. Ch., No. 2022-1001, oral arguments 1/9/25.

At issue: Last February, Chancellor Kathaleen St. Jude McCormick allowed a Swedish pension fund to proceed with a lawsuit challenging Microsoft Corp.‘s $69 billion acquisition of video game studio Activision Blizzard Inc. Microsoft, Activision, and former Activision directors now seek the dismissal of at least some of the claims in the pension fund’s third amended complaint. The pension fund said it “still has had no significant discovery in this two-year-old litigation,” according to an answering brief.

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

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Thursday: Operating Eng’rs Constr. Indus. & Miscellaneous Pension Fund v. Pioneer Nat. Res. Co., Del. Ch., No. 2024-0101, trial 1/9/25.

At issue: A pension fund sued Pioneer Natural Resources Co. last February ahead of a planned $60 billion sale to ExxonMobil Corp., citing fears Pioneer’s leaders may have hidden news about Exxon’s finances that threatened the deal’s value to Pioneer shareholders. Eight months after the merger closed, the books-and-records lawsuit—in which ExxonMobil is not named as a defendant—goes to trial. The pension fund seeks internal files from the Texas-based energy exploration and production company to investigate allegations that its executives concealed a looming impairment charge at Exxon worth $2.4 billion to $2.6 billion. Pioneer says it’s produced hundreds of pages of board meeting minutes, related materials, and other corporate records, yet the pension fund “presses for more,” according to a brief. The pension fund seeks former Pioneer CEO Scott Sheffield’s text messages and emails related to the merger, according to their pre-trial brief.

Court action: Senior Magistrate Judge Selena E. Molina will preside over a half-day trial in Wilmington, Del.

Exxon’s $60 Billion Pioneer Buyout Draws Pension Fund Lawsuit