Delaware Business Litigation Report

Court Of Chancery Issues Novel Injunction

Numoda Corporation v. Numoda Technologies Inc., C.A. 9163-VCN (March 27, 2014)

It is common in a Section 225 action seeking the determination of the composition of a company's board of directors for the court to issue a status quo order.  Those orders stop the company from taking any actions out-of-the-ordinary course of business until the Court decides who is really in control.  Here the Court issued a similar order pending a decision on whether the plaintiff was entitled to have stock issued to it to take control.  This extends the use of status quo orders to a new realm.

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