The Delaware Chancery Court, in a bench ruling, held that Camac Fund LP, an investor in Forte Biosciences, Inc., raised “reasonable inferences” that the company and management engaged in a “pattern of defensive conduct” to entrench themselves in the face of stockholder demands for change. The dispute arises from last year’s stockholder meeting, in advance of which the company executed a large private placement that diluted unaffiliated shareholders and tipped the director election in favor of the incumbents and against Camac’s nominees. The court upheld both claims in the action for breach of fiduciary duty and wrongful dilution.
Morris Kandinov LLP represents the plaintiff, Camac Fund LP.
The action is Camac Fund LP v. Wagner et al., No. 2023-0817 (Del. Ch.).
Contact Aaron Morris for additional information.
