Hyde Park Venture Partners Fund III L.P. v. FairXchange, LLC

BVLaw
Full Text of Court Cases
July 30, 2024
6231 Security and Commodity Exchanges
523210 Securities and Commodity Exchanges
shareholder dissent/oppression
early stage companies, fair value, appraisal, dissenting shareholder, merger, retail, stock, projections, deal price, startups, trial court

Hyde Park Venture Partners Fund III L.P. v. FairXchange, LLC
2024 Del. Ch. LEXIS 270; 2024 WL 3579932
US
State Court
Delaware
Court of Chancery
Laster

Summary

This was a case that, once again, adopted the deal price in a shareholders’ dissent appraisal proceeding. The judge was not satisfied with the experts’ methodologies. He noted the difficulty in valuing a startup in a business model that had not been tried before. Absent compelling evidence of value from either side, the court fell back on the deal price.
Hyde Park Venture Partners Fund III L.P. v. FairXchange
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See Also

Chancery Court (Delaware) Adopts Deal Price—Deplores Valuation Methodologies

This was a case that, once again, adopted the deal price in a shareholders’ dissent appraisal proceeding. The judge was not satisfied with the experts’ methodologies. He noted the difficulty in valuing a startup in a business model that had not been tried before. Absent compelling evidence of value from either side, the court fell back on the deal price.