THERMOPYLAE CAPITAL PARTNERS, L.P. v. SIMBOL, INC.

C.A. No. 10619-VCG.

THERMOPYLAE CAPITAL PARTNERS, L.P. and M. SCOTT CONLEY, Plaintiffs, v. SIMBOL, INC., JOSHUA L. GREEN, PAUL B. CLEVELAND, WILLIAM ERICSON, MOHR DAVIDOW VENTURES, MDV IX, L.P., TAKASHI SUNADA, ITOCHU CORPORATION, JOHN ASHBURN, MARTIN L. LAGOD, FIRELAKE STRATEGIC TECHNOLOGY FUND, II, L.P., FIRELAKE INVESTORS FUND, II, L.P., FIRELAKE CAPITAL MANAGEMENT LLC, and JOHN BURBA, Defendants.

Court of Chancery of Delaware.

Decided: January 29, 2016.


Attorney(s) appearing for the Case

Sidney S. Liebesman , Lisa Zwally Brown , and Chad Flores , of MONTGOMERY, McCRACKEN, WALKER & RHOADS, LLP, Wilmington, Delaware, Attorneys for Plaintiffs.

Peter J. Walsh and Tyler J. Leavengood , of POTTER ANDERSON & CORROON LLP, Wilmington, Delaware; OF COUNSEL: Matthew Rawlinson and James H. Moon , of LATHAM & WATKINS LLP, Menlo Park, California, Attorneys for Defendants Martin Lagod, Firelake Strategic Technology Fund, II, L.P., Firelake Investors Fund, II, L.P., and Firelake Capital Management LLC.

Rudolf Koch , Susan M. Hannigan , and Matthew D. Perri , of RICHARDS, LAYTON & FINGER, P.A., Wilmington, Delaware, Attorneys for Defendants Takashi Sunada and Itochu Corporation.

Elena C. Norman , James M. Yoch , and Lakshmi A. Muthu , of YOUNG CONAWAY STARGATT & TAYLOR, LLP, Wilmington, Delaware; OF COUNSEL: J. Daniel Sharp , of CROWELL & MORING LLP, San Francisco, California, Attorneys for Defendants Mohr Davidow Ventures, MDV IX, L.P., Joshua L. Green, Paul B. Cleveland, and William Ericson.

Patricia R. Urban , of PINCKNEY, WEIDINGER, URBAN & JOYCE LLC, Greenville, Delaware; OF COUNSEL: Alan J. Stone and Hailey DeKraker , of MILBANK, TWEED, HADLEY & McCLOY LLP, New York, New York, Attorneys for Defendants John Ashburn and John Burba.

Patricia L. Enerio and Aaron M. Nelson , of PROCTOR HEYMAN ENERIO LLP, Wilmington, Delaware, Attorneys for Defendant Simbol, Inc.


MEMORANDUM OPINION

The Plaintiffs here are M. Scott Conley—a founder and stockholder of Simbol, Inc., ("Simbol" or the "Company")—and stockholder Thermopylae Capital Partners, LP ("Thermopylae"), an entity that Conley controls. This matter involves a dilution claim by the...

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