In Laborers Local 235 Benefit Funds v. Starent Networks, Corp., et al., C. A. No. 5002-CC (Del. Ch. Nov. 18, 2009), read letter decision here, the Court granted plaintiff’s motion to expedite this matter based on the stock based compensation expense disclosure claim.
Kevin Brady, a highly regarded Delaware litigator, provided the synopsis for this decision.
The Court noted that “[t]o achieve expedition in this Court, a movant must establish a ’sufficiently colorable claim and show a sufficient possibility of a threatened irreparable injury.’” (citing Giammargo v. Snapple Beverage Corp., 1994 Del. Ch. LEXIS 199, at *6 (Del. Ch. Nov. 15, 1994). “Under Delaware law, nearly all disclosure violations are per se irreparable harm because the harm arising from the un- or misinformed transaction is of a nature where the injury cannot be compensated adequately in damages. (citing Alpha Builders, Inc. v. Sullivan, 2004 Del. Ch. LEXIS 162, at *19 (Del. Ch. Oct. 5, 2004)).”