Zenith Electronics LLC, an affiliate of LG Electronics Inc., has once again failed in its attempt to dismiss two founders of Alphonso Inc., an ad tech startup it acquired. A ruling by the Delaware Supreme Court on Monday affirmed the trial court’s decision that Zenith Electronics LLC had indeed wrongfully terminated the founders. The Delaware Chancery Court initially made a decision in January 2024, mandating that the interim CEO of Alphonso, who was appointed by a board of directors under LG’s control, was still required to adhere to a stockholders’ agreement. This agreement obligated the CEO to use “reasonable efforts” to protect the founders’ rights. The Vice Chancellor found that the interim CEO had violated this agreement clause when the founders were terminated.
