Document: Postorivo v. Ag Paintball Holdings, Inc., C.A. No. 3111-VCP, Parsons, V.C. (Del. Ch. Feb. 29, 2008)
The Court granted the Defendant’s motion to dismiss, because the Plaintiff lacked standing to bring a derivative lawsuit because he was not a shareholder in the corporation. The deprivation of Plaintiff’s shares was due to a contractual forfeiture provision.
The Court denied Coral’s Motion to Enforce Final Judgment, which seeks to preclude Matria from submitting to arbitration before AAA certain claims arising out of Matria’s acquisition of CorSolutions. The Merger Agreement had stipulated that if a claim fell within the scope of arbitration before the Settlement Accountant and the scope of arbitration before the AAA, then the claim would be resolved by the Settlement Accountant. But the Court held that because Matria had been a victim of CorSolutions’ fraud and misrepresentation, relating to inflated revenues and earnings projections from overbilling of customers, the matter may be heard in front of the AAA.