DLA Piper obtained a complete dismissal with prejudice of an action filed in the Delaware Chancery Court against clients GigAcquisitions2, LLC, GigCapital2, Inc., UpHealth, Inc., Avi Katz, and Raluca Dinu, with the Court rejecting all claims with no exception.
The plaintiffs in the dispute were equity holders of Cloudbreak Health, which provides healthcare language interpretation services. Cloudbreak Health combined with UpHealth Holdings, which provides behavioral health and pharmacy services, as part of a de-SPAC merger with GigCapital2 that took place in June 2021, and which involved other companies acquired by UpHealth Holdings. The plaintiffs alleged they were fraudulently induced into the merger and that the delivery of their merger consideration was delayed, leaving them unable to sell their shares at a higher price.
In a 51-page decision, the Court found that many of the plaintiffs’ claims were not “reasonably conceivable,” and that the rest were time-barred.
The DLA Piper team consisted of Partner Melanie Walker (Los Angeles), who handled the oral argument, Partner Ron Brown (Wilmington), Of Counsel Kelly Freund (Wilmington), and Associate Emma Peplow (Los Angeles) with assistance from Partners Richard Zelichov (Los Angeles) and Jeffrey Selman (San Francisco).