ATG Capital Opportunities Fund LP v. Ryan Lane
CourtCourt of Chancery of Delaware
Date FiledAugust 4, 2026
Docket2026-0447-LWW
StatusPublished
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Full Opinion
COURT OF CHANCERY
OF THE
STATE OF DELAWARE
LORI W. WILL LEONARD L. WILLIAMS JUSTICE CENTER
VICE CHANCELLOR 500 N. KING STREET, SUITE 11400
WILMINGTON, DELAWARE 19801-3734
August 4, 2026
A. Thompson Bayliss, Esq. John P. DiTomo, Esq.
John M. Seaman, Esquire Jacob M. Perrone, Esquire
Caitlin C. Bozman, Esquire Nicholas R. Gottemoller, Esquire
Bryan Blaylock, Esquire Morris, Nichols, Arsht & Tunnell LLP
Abrams & Bayliss LLP 1201 North Market Street
20 Montchanin Road, Suite 200 Wilmington, Delaware 19801
Wilmington, Delaware 19807
RE: ATG Capital Opportunities Fund LP v. Ryan Lane, et al.,
C.A. No. 2026-0447-LWW
Dear Counsel:
I have reviewed the parties’ August 3 and August 4 letters concerning
plaintiff ATG Capital Opportunities Fund LP’s assertion of business strategy
immunity over the names of Empery Digital, Inc. stockholders in a specific joint
exhibit (JX 955).1
Delaware recognizes the business strategy immunity as a narrow, qualified
privilege that protects “live strategies and plans” where disclosure would risk non-
litigation injury.2 ATG asserts that because JX 955 reflects its internal assessment
1
Dkts. 241-42.
2
Atl. Rsch. Corp. v. Clabir Corp., 1987 WL 758584, at *2 (Del. Ch. Feb. 10, 1987).
C.A. No. 2026-0447-LWW
August 4, 2026
Page 2 of 3
of the electorate, the names of the stockholders it selected must be shielded. I
disagree.
The compilation of these names may have been used by ATG to formulate a
strategy, but that does not immunize the underlying facts from discovery. The
names of stockholders are not, in and of themselves, a business strategy.3 This
court is reluctant to allow parties to withhold such relevant evidence to prevent a
perceived strategic advantage in a proxy contest.4
Finally, ATG’s concern that the defendants might use this information to
target specific stockholders and influence their votes outside of this litigation is
mitigated by the existing confidentiality order.5 That order permits ATG to
designate JX 955 “Highly Confidential,” limiting its use to this litigation and
preventing the harm business strategy immunity is designed to avoid.
3
See Texas Pac. Land Corp. v. Horizon Kinetics LLC, C.A. No. 2022-1066-JTL, ¶ 3(c)
(Del. Ch. Apr. 11, 2023) (ORDER) (“The names of stockholders are not a business
strategy . . . .”).
4
See Paragon Techs., Inc. v. Cryan, C.A. No. 2023-1013-LWW, at 8 (Del. Ch. Nov. 16,
2023) (TRANSCRIPT); see also Glassman v. Crossfit, Inc., 2012 WL 4859125, at *5
(Del. Ch. Oct. 12, 2012) (“This Court has been reluctant to allow parties to withhold
relevant evidence by invoking the business-strategy privilege, even when the disclosure
might benefit one of the parties outside of litigation.”). ATG’s reliance on Dedde v.
Orrox Corp. is misplaced, as the quoted language in that decision pertained to the
appropriate scope of discovery in a Section 220 summary proceeding, not the application
of this immunity to trial exhibits. 1981 WL 15121, at *1 (Del. Ch. Apr. 8, 1981).
5
Dkt. 42.
C.A. No. 2026-0447-LWW
August 4, 2026
Page 3 of 3
Accordingly, ATG’s request to maintain the challenged redactions is denied.
I am mindful, however, that we are in the middle of an expedited trial, and that
lifting redactions from JX 955—a dense, native spreadsheet—would be
burdensome and disruptive. To alleviate this burden, I adopt the defendants’
practical suggestion that ATG be ordered to produce a standalone list of the
stockholder names that were redacted from JX 955. ATG must do so by midnight
tonight.6 That list may be designated Highly Confidential. IT IS SO ORDERED.
Sincerely yours,
/s/ Lori W. Will
Lori W. Will
Vice Chancellor
6
The defendants’ request for an unredacted version of JX 955 comes too late. Had it
been made sooner, I would have ordered that an unredacted version of the spreadsheet be
produced.