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Organovo Holdings, inc. v. Dimitrov

Court of Chancery of Delaware

March 3, 2017, Submitted; June 5, 2017, Decided

C.A. No. 10536-VCL

Opinion

 [*104]  LASTER, Vice Chancellor.

Defendant Georgi Dimitrov moved to vacate the entry of default judgment against him. His motion is granted.

I. FACTUAL BACKGROUND

The facts are drawn from the Verified Complaint (the "Complaint") and the materials submitted by the parties during post-default proceedings. A default judgment "deem[s] admitted all the well-pleaded  [*105]  facts in the complaint."1 This decision also takes judicial notice of previous proceedings in a related action.

The Parties

Plaintiff Organovo Holdings, Inc. ("Organovo" or the "Company") is a Delaware corporation with its headquarters in San Diego, California. The Company designs and creates functional human tissues through its use of proprietary three-dimensional bio-printing technology. In July 2013, the Company listed its common stock on the New York Stock Exchange. In the months following its initial listing, the Company's stock price fluctuated widely. Between October [**2]  2013 and March 2014, the Company's stock price ranged between $5.55 per share and $12.75 per share, with an average trading price of $8.78.

Dimitrov is a man of mystery. In February 2014, he formed non-party Simeon Research, LLC ("Simeon"), a Delaware limited liability company. Shortly afterwards, he created a website for Simeon at the URL www.simeonresearch.com . He also secured for Simeon the Twitter handle @SimeonResearch. Simeon's Twitter bio described its feed as "long/short analytical equity research."2

Simeon engaged in a single activity: publishing negative information about the Company. In March and April 2014, Dimitrov published two reports in Simeon's name. Dimitrov called attention to these reports by posting sixty-five comments on Simeon's Twitter account.

B. The March Report

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162 A.3d 102 *; 2017 Del. Ch. LEXIS 95 **; 2017 WL 2417917

ORGANOVO HOLDINGS, INC., a Delaware Corporation, Plaintiff, v. GEORGI DIMITROV, Defendant.

Subsequent History: Later proceeding at Organovo Holdings, Inc. v. Dimitrov, 2017 Del. Ch. LEXIS 192 (Del. Ch., June 6, 2017)

CORE TERMS

injunction, defamation, equitable, libel, defamatory, default, stock, bioprinting, enjoin, disgorgement, investors, permanent, website, e-mail, tweets, Manufacturing, tortious, technology, unlawfully, customers, vacate

Civil Procedure, Pretrial Judgments, Default & Default Judgments, Relief From Default, Judgments, Relief From Judgments, Void Judgments, Preliminary Considerations, Equity, Jurisdiction, Subject Matter Jurisdiction, Jurisdiction Over Actions, Equity, Adequate Remedy at Law, Torts, Defamation, Remedies, Damages, Injunctions, Permanent Injunctions, Maxims, Libel Principle, Injunctions, Constitutional Law, Fundamental Freedoms, Freedom of Speech, Defamation, Judicial & Legislative Restraints, Prior Restraint, Relief, Prospective Advantage, Intentional Interference, Remedies, Elements, Intentional Torts, Procedural Matters