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.
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