In a September 12, 2022 order, Vice Chancellor Morgan T. Zurn of the Delaware Court of Chancery, in a case arising from the collapse of the Infinity Q Diversified Alpha Fund, denied a motion by the defendants to dismiss the case in favor of a special committee formed by the defendants in anticipation of litigation. The court ruled that investors had sufficiently alleged “particularized facts demonstrating divergent interests between the Trust board and the [c]ommittee supporting the inference that even though the Trust board created a special committee before a lawsuit was filed, the circumstances of that committee’s creation demonstrate the Trust board conceded demand futility and abdicated control over procedural defenses.” As a result, the board had “divested itself of authority to raise technical or procedural defenses and to cause an appropriate motion to be made on behalf of the Trust.”
Morris Kandinov LLP represents the investor in the case. For more information regarding the case, contact Leo Kandinov at leo@moka.law.
