VC Law: Episode 50: Delaware Litigation Update with Lisa Stark

Host Gary J. Ross and Delaware corporate lawyer Lisa Stark of Hirschler Fleischer discuss recent litigation developments affecting venture-backed companies. Lisa explains the Delaware Supreme Court’s decision in Moelis and the enactment of DGCL Section 122(18), which authorizes many of the stockholder agreement provisions previously held invalid. Gary and Lisa then discuss Zync, Inc. v. Porsche Investments, in which a corporate venture investor interfered with a startup’s financing efforts. They conclude with CIBC Bank USA v. Barker, involving a company rejecting reasonable acquisition offers due to the preferred stock’s liquidation preference.