Reid Collins has won a major victory in the Delaware Court of Chancery ordering dissolution of Inspirion Delivery Sciences, LLC (“IDS”), a company that developed a promising technology to make opioid painkilling medications more difficult to abuse. RCT brought the lawsuit on behalf of Founder Ray DiFalco to dissolve the company in September 2018 and proceeded to trial within three months.
In his May 17, 2019, decision, Chancellor Andre G. Bouchard resolved all four claims tried in a December 2018 bench trial in favor of RCT’s client and ordered the extraordinary remedy of dissolution. RCT’s clients, Ray DiFalco and Manish Shah, developed IDS’ promising technology, which makes opioid painkilling medications more difficult to abuse, and formed a company with the defendant. IDS holds the patents to the abuse-deterrent technology. The founders of IDS came to “loggerheads over issues of fundamental importance” to the Company, Chancellor Bouchard wrote. RCT’s client sought dissolution of IDS to free the intellectual property from the dysfunction and discord at IDS. Chancellor Bouchard ruled a liquidating trustee should be appointed for IDS within five days. RCT and its clients are hopeful that this ruling will facilitate development of new products using the technology, thereby helping to solve the opioid crisis currently plaguing this country. “This is an important victory for our client that will hopefully free up the technology so desperately needed to help those affected by the opioid epidemic,” said William T. Reid, IV lead counsel and co-founder of Reid Collins & Tsai. “We’re grateful that this court took the rare step of ordering a dissolution of the dysfunctional company.”
Read the decision here.

Prior results do not guarantee a similar outcome.