Directed Inquiry

Question: Investigate Alex Karp: Search court records for "Delaware Chancery Court case search for 'Palantir Technologies' and 'derivative' 2020-2024". Derivative suits would indicate shareholder attempts to hold executives personally liable for corporate decisions. Report any findings as factual claims with dates and evidence.

Date: 2026-04-11

Research Findings

Research reveals two significant Delaware Chancery Court cases involving Alex Karp and Palantir Technologies during 2020-2024. The primary derivative lawsuit was Central Laborers' Pension Fund v. Karp et al. (Case No. 2023-0864-LWW), filed August 25, 2023, which alleged insider trading under Delaware's Brophy doctrine, breach of fiduciary duties, and unjust enrichment. The plaintiffs claimed Karp and other directors profited from approximately $475 million in stock sales during Palantir's September 2020 direct listing and subsequent SPAC investments, alleging these constituted a scheme to artificially inflate stock prices while insiders liquidated positions.

Vice Chancellor Lori W. Will dismissed the derivative action with prejudice on April 25, 2025, ruling that plaintiffs failed to adequately plead demand futility under Delaware Chancery Rule 23.1. The court applied the universal test from Zuckerberg, finding no particularized allegations that a majority of the board faced substantial likelihood of liability for non-exculpated claims. Notably, the court observed that 75% of insider trades occurred under pre-arranged 10b5-1 plans or for tax obligations, undermining claims of improper insider trading. Additionally, there was a separate governance-related class action settlement involving Eric R. Gilbert that addressed Palantir's dual-class voting structure changes around the direct listing period.

Data Collected

• Entities created: Central Laborers' Pension Fund, Eric R. Gilbert, Ezra Cattan, Lisa Cattan, Saul Cattan, Sean Endress, Mikhail Kuperman, Hassan Kutom, Kristopher Mares, Taylor McGraw, Vice Chancellor Lori W. Will, David Livshiz, Boris Feldman, Maria Slobodchikova, Freshfields Bruckhaus Deringer, KT4 Partners LLC
• Facts recorded: 10
• Connections mapped: 6
• Web sources consulted: 29

Sources

• Document
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