Forian Holdings LLC, et al. v. Symphony Health Solutions Corp., et al.

Summary

The Delaware Court of Chancery determines the amount of a bond required to secure a Status Quo Order preserving the historical supply of commercial data to Forian Holdings LLC pending a preliminary injunction hearing. The court rejects the defendants’ request for a $10 million bond as based on speculative downstream customer attrition and requires the plaintiffs to post a $437,000 bond. The court leaves open the possibility of revisiting the bond amount at the preliminary injunction hearing.

Holdings

1. The plaintiffs must post a $437,000 bond as security for potential losses resulting from the Status Quo Order.

Questions Presented

1. What amount of security should plaintiffs post to compensate defendants if the Status Quo Order is later determined to have been improvidently issued?
2. Whether the proposed $10 million bond was supported by sufficiently concrete evidence of potential harm or was based on speculative losses.

Disposition

other