Knightek, LLC v. Jive Communications, Inc.

Summary

The Supreme Court of Delaware reversed the dismissal of KnighTek’s fraudulent-misrepresentation claim and remanded for further proceedings. It held that the complaint pleaded fraud with sufficient particularity and plausibly alleged that Jive made knowingly false, objectively verifiable representations about its available funds, competing buyouts, and the timing of future payments to induce KnighTek to accept a discounted payout. The court also held that the acceleration agreement’s release would not bar the claim if the agreement was obtained through fraud.