Chancery Tosses Derivative Suit Over Uber-Ottomotto Deal

Law360 (April 1, 2019, 5:21 PM EDT) -- A Delaware vice chancellor dismissed an investor's derivative lawsuit over losses stemming from Uber's deal to buy a self-driving vehicle startup that allegedly stole trade secrets, saying Monday that the investor failed to ask the board to bring the litigation before he did.

Lenza H. McElrath III has argued that such a demand would have been pointless because Uber Technologies Inc.'s board signed off on the company's acquisition of startup Ottomotto LLC. Vice Chancellor Sam Glasscock III rejected this argument, saying most of the directors who would have decided whether to bring the litigation themselves would have been "disinterested and independent"...

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