Kaufman v. DNARx LLC, C.A.
No. 2022-0968-KSJM; C.A. No. 2022-0982-KSJM (Del. Ch. Dec. 29,
2023) (ORDER)
The Court of Chancery has broad power to address litigation
misconduct. This sanctions order arose out of litigation concerning
a loan to a start-up Delaware LLC in the medical research field.
The litigation misconduct by the defendant LLC included lying,
destroying evidence, and ignoring numerous court orders. Finding
the defendant's actions egregious and deplorable, the Court
entered an extreme sanction—dissolution of the LLC and a
liquidation process overseen by a court-appointed receiver.
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