LRC Secures Settlement of $750 Million Holdback Claim Against Altaba, Inc. f/k/a Yahoo! Inc. in Section 280 Proceeding in the Court of Chancery
In re Altaba, Inc., C.A. No. 2020-0413-JTL, Order (Del. Ch. June 23, 2022)
Landis Rath & Cobb LLP successfully represented claimant Droplets, Inc. in a proceeding pursuant to 8 Del. C. § 280 concerning the wind-down of Altaba, Inc. f/k/a Yahoo! Inc. Following a trial on Droplets’ approximately $750 million holdback claim arising out of potential damages in a patent suit pending in the United States District Court for the Northern District of California, the Court of Chancery entered an order setting as a holdback for Droplets’ claim a fraction of the asserted claim amount. Droplets moved under Court of Chancery Rule 59 for a new trial based on newly discovered evidence bearing on the security of the holdback and the court granted Droplets’ motion. On June 23, 2022, the Court of Chancery approved the parties’ comprehensive settlement of Droplets’ claim, reserving as security a substantially larger holdback than the Court initially had awarded.