Court Reviews Fiduciary Disclosure Obligations in Connection with Seeking Investments
By Annette E. Becker and Samira F. Torshizi
In Clark v. Davenport, C.A. No. 2017-0839-JTL (Del. Ch. July 18, 2019), the Delaware Court of Chancery ruled on a motion to dismiss claims brought by Plaintiff Kenneth Clark (“Clark” or “Plaintiff”) against former officers, directors, and controlling stockholders of a now-defunct Basho Technologies Inc. (“Basho”) by an investor, who accused defendants of violating their fiduciary duties and committing fraud by inducing plaintiff to invest millions in what defendants knew was a failing enterprise. The motions to dismiss were granted in part and denied in part dependent on the involvement of the particular defendant in the scheme.
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