Art.Com Founders Revive Claims Against VC Firms in Walmart Deal

Venture capital shareholders in Art.com Inc. must face allegations they breached their fiduciary duties by agreeing to sell the online artwork retailer to Walmart Inc. for $40 million, a California appellate court said Wednesday.

Art.com founders Joshua Chodniewicz and Michael Marston sued Walmart and individual members of the Art.com board in 2019 in California state court, seeking to block the closing of the sale and alleging breach of fiduciary duty and aiding and abetting breach of duty.

They alleged the Art.com board of directors accepted a letter of intent from Walmart in 2018, which stated the proceeds would be used ...