Keypoint Intelligence Secures Defense Victory on Former CEO Claims

Secured a defense victory for Keypoint Intelligence, a portfolio company of a California-based private equity firm. Keypoint’s former CEO as a profits interest holder commenced an action under Section 18-305 of the Delaware Limited Liability Company Act  in the Court of Chancery, seeking an inspection of company records, for among other purposes, an investigation into purported self-interested transactions, and indemnity. The Court dismissed the indemnity claim based upon our motion.  After trial, the Court issued a final decision, concluding that the former CEO lacked standing because his profits interest was not a membership interest and he was not admitted as a member under applicable law and the company’s limited liability company agreement. The action is currently under exceptions review in the Court of Chancery.