An affiliate of LG Electronics Inc. has once again failed in its attempt to remove the two founders of Alphonso Inc., an ad tech startup it acquired.
The Delaware Supreme Court issued an opinion on Monday, affirming the trial court’s ruling that Zenith Electronics LLC unlawfully terminated the founders.
In January 2024, the Delaware Chancery Court found that the interim CEO of Alphonso, appointed by a board of directors controlled by LG, was still obligated by a stockholders’ agreement to make “reasonable efforts” to protect the founders’ rights. The Vice Chancellor determined that the interim CEO breached this agreement when the founders were terminated.
