Opinion retains most of Frederick Hsu’s claims against Oversee.net investors, officers and board members.
Last year, I wrote about a lawsuit that Oversee.net co-founder Frederick Hsu (through the Frederick Hsu Living Trust) filed against Oversee.net investor Oak Hill Capital Partners and many former board members and officers of the company.
Hsu alleged six claims in the Delaware Court of Chancery, mostly around a breach of fiduciary duty. Hsu argued that the defendants took actions to benefit investor Oak Hill rather than shareholders at large.
On Friday, Vice Chancellor J. Travis Laster ruled that only two of the six claims should be dismissed, and the other four can move forward. Most notably, all claims related to a breach of fiduciary duty can move forward.
It’s important to note that, at this state of the complaint, all of Hsu’s allegations are assumed to be true and he receives all reasonable inferences for the purpose of determining if claims should be dismissed.
Hsu’s alleges that the defendants abandoned a growth plan that benefited all shareholders to instead focus on redeeming the investment of just one preferred shareholder, Oak Hill. Oak Hill invested $150 million in the company and had redemption rights. The defendants’ actions to fulfill redemptions are at the heart of the case. Click here to continue reading…