Chancery Awards $20M In Damages Over Tech Firm Takeover

Law360 (July 6, 2018, 9:31 PM EDT) -- A Delaware vice chancellor has slapped an investor and his fund with $20.3 million in joint and several damage sanctions, ruling Friday that they put a tech company on a "greased slide to failure" in a disastrous, bad faith campaign to gain control and profit from a company sale.

Vice Chancellor J. Travis Laster's order includes a $17,490,650 sanction against Georgetown Basho Investors LLC and founder Chester C. Davenport for losses suffered by Basho Technologies Inc., its co-founder and former CEO Earl P. Galleher and others as the result of fiduciary duty breaches and a "punitive" lending scheme.

The court also...

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