Chancery Was Correct To Toss Dilution Suit, Del. Justices Say

Law360 (October 4, 2019, 4:27 PM EDT) -- The Delaware Supreme Court on Friday upheld the toss of a complaint by minority stockholders of IDEV Technologies Inc. who claimed other shareholders unfairly engineered massive dilution of their shares in the health care tech company.

A three-justice panel ruled shareholders Jeffrey J. Sheldon, who is IDEV’s founder and former CEO, and inventor and former company consultant Andras Konya failed to show that venture capital firm investors had acted as a control group, which would have enabled the two to seek direct and derivative claims.

The alleged controllers, affiliates of Pinto Technology Ventures LP, RiverVest Venture Fund I LP, and Bay...

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