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ASHALL HOMES LTD. v. ROK ENTERTAINMENT GROUP INC.

C.A. No. 4643-VCS.

992 A.2d 1239 (2010)

ASHALL HOMES LIMITED, Arthur Simon Davies, Scott Alexander Ashall, David William Ashall, Anthony Mark Ashall and Thames Limited, Plaintiffs, v. ROK ENTERTAINMENT GROUP INC., a Delaware corporation, Jonathan Kendrick, Laurence Alexander and Alex Renny, Defendants.

Court of Chancery of Delaware.

Decided: April 23, 2010.

Attorney(s) appearing for the Case

Charles J. Brown, III, Esquire, Archer & Greiner, Wilmington, Delaware; Mitchell D. Cohen, Esquire, Vedder Price P.C., New York, New York, Attorneys for Plaintiffs Ashall Homes Limited, Arthur Simon Davies, Scott Alexander Ashall, David William Ashall, Anthony Mark Ashall, and Thames Limited.

Daniel B. Rath, Esquire and Rebecca L. Butcher, Esquire, Landis, Rath & Cobb, LLP, Wilmington, Delaware; Kirk L. Brett, Esquire, Duval & Stachenfeld, LLP, New York, New York, Attorneys for Defendants ROK Entertainment Group Inc., Jonathan Kendrick, and Alex Renny.

OPINION

STRINE, Vice Chancellor.

I. Introduction

This dispute is between a corporation and its stockholders over whether the stockholders were tricked into making their investments in the company. The stockholders allege that the corporation's officers promised that, in return for investing in the company, the investors would ultimately receive shares of stock in a successor U.S. company that would be SEC-registered, unrestricted, and freely...

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