News Releases
December 18, 2015
From Law360, Wilmington

by Cara Salvatore

The co-founder and ousted board chair of high-tech database company Basho Technologies Inc. sued the company in a Delaware Chancery Court complaint unsealed Thursday, saying a major investor's “punitive” funding terms and self-dealing caused a disastrous fall in the company's fortunes.

The partially redacted individual and derivative complaint by co-founder and former board chair Earl Galleher says Chester Davenport and his Georgetown Partners, a major Basho stakeholder, destroyed business prospects for the company, created a liquidity crisis and then negotiated in bad faith with a different potential funder, Southeast Venture, so that Georgetown could provide a funding round called Series G that included terms detrimental to Basho.

Galleher and the funders are represented by R. Montgomery Donaldson, Robert Spake, and Robert Penza of Polsinelli PC.

Law360 subscribers can view the full article here.