The Delaware Court of Chancery, in Maverick Therapeutics, Inc., et al. v. Harpoon Therapeutics, Inc., C.A. No. 2019-0002-SG, memo. op. (Del. Ch. Apr. 3, 2020), found that a party to a collaboration agreement with an entity spun off from defendant company demonstrated that defendant fraudulently induced the collaborator to invest in and collaborate with the spun-off entity based on a broad, exclusive transfer of technology to the spun-off entity, even though the agreement transferring technology from defendant to the spun-off entity, to which the collaborator was not a party, unambiguously covered a narrow field of technology.
NEW: Morris James discusses the decision in Delaware Corporate and Commercial Case Law 2019 Year in Review: Significant Decisions of the Delaware Supreme Court and the Delaware Court of Chancery.
$$$ Law360 discusses the decision in Chancery Finds Fraud In Cancer Drug Firm’s Spinoff Deal.