The Delaware Court of Chancery has stopped a company that bankrolled litigation over the future of a mobile radio services company from collecting $20 million in attorneys fees and expenses, ruling that it lacked standing as a non-party and that the “gratuitous” financing served only its own interests.
Preferred Spectrum Investments had argued that the award was justified because its financial backing of Michael D. Judy, the plaintiff in the case, helped PSI prevail over Preferred Communication Systems Inc., securing a shareholder meeting and ultimately allowing PCSI to keep $100 million worth of wireless licenses.
