IN RE TRADOS INC. SHAREHOLDER LITIGATION

No. CIV .A. 1512-VCL.

73 A.3d 17 (2013)

In re TRADOS INCORPORATED SHAREHOLDER LITIGATION.

Court of Chancery of Delaware.

Decided: August 16, 2013.


Attorney(s) appearing for the Case

David A. Jenkins , Michele C. Gott , Robert K. Beste, III , Smith, Katzenstein & Jenkins LLP, Wilmington, Delaware; Timothy J. McEvoy , Cameron McEvoy, PLLC, Fairfax, Virginia; Attorneys for Plaintiff Marc Christen.

Raymond J. DiCamillo , Scott W. Perkins , Richards, Layton & Finger, P.A., Wilmington, Delaware; David J. Berger , Elizabeth M. Saunders , Steven Guggenheim , Wilson Sonsini Goodrich & Rosati, P.C., Palo Alto, California; Attorneys for Defendants David Scanlan, Lisa Stone, Sameer Gandhi, Joseph Prang, Klaus-Dieter Laidig, Joseph Campbell, and Jochen Hummel.

John L. Reed , Scott B. Czerwonka , Andrew H. Sauder , DLA Piper LLP, Wilmington, Delaware; Attorneys for Defendant Trados Inc.


OPINION

LASTER, Vice Chancellor.

TRADOS Inc. ("Trados" or the "Company") obtained venture capital in 2000 to support a growth strategy that could lead to an initial public offering. The VC firms received preferred stock and placed representatives on the Trados board of directors (the "Board"). Afterwards, Trados increased revenue year-over-year but failed to satisfy its VC backers. In 2004, the VC directors began looking to exit. As part of that process...

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