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Recent Chancery Rulings Offer Forum Selection Pointers

Law360 (May 24, 2019, 2:38 PM EDT) -- Two recent Delaware Court of Chancery decisions — Sheldon v. Pinto Technology Ventures LP[1] and Plaze Inc. v. Callas[2] — serve as salient reminders of a number of key points relating to forum selection clauses. In addition, Sheldon reinforces long-standing principles regarding the establishment of control groups. Finally, the court’s opinion appears to reflect an attitude of general skepticism by the court of dilution claims by early-stage investors after a significant increase in a company’s valuation.

Sheldon

In Sheldon, the court dismissed the plaintiffs’ fiduciary claims against certain directors and officers of IDEV Technologies Inc. that were based on the plaintiffs...

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