The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Thu, 09 Jul 2026 19:49:57 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Delaware Chancery Dismisses KnowBe4 Take-Private Challenge – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Delaware Chancery Dismisses KnowBe4 Take-Private Challenge https://corpgov.law.harvard.edu/2026/07/09/delaware-chancery-dismisses-knowbe4-take-private-challenge/?utm_source=rss&utm_medium=rss&utm_campaign=delaware-chancery-dismisses-knowbe4-take-private-challenge https://corpgov.law.harvard.edu/2026/07/09/delaware-chancery-dismisses-knowbe4-take-private-challenge/#respond Thu, 09 Jul 2026 11:30:04 +0000 https://corpgov.law.harvard.edu/?p=182348?d=20260708165356EDT Posted by Jason Halper, Michael C. Holmes, and Sara Brauerman, Vinson & Elkins LLP, on Thursday, July 9, 2026
Editor's Note:

Jason Halper is a Partner, Michael C. Holmes is Vice Chair, and Sara Brauerman is a Partner at Vinson & Elkins LLP. This post is based on a Vinson & Elkins memorandum by Mr. Halper, Mr. Holmes, Ms. Brauerman, Marisa Antonelli, and Anna Boos, and is part of the Delaware law series; links to other posts in the series are available here.

On May 27, 2026, Chancellor Kathaleen McCormick of the Delaware Court of Chancery issued a memorandum opinion in Le Clair v. KnowBe4, Inc., C.A. No. 2024-1143-KSJM, granting defendants’ motions to dismiss all claims arising from Vista Equity Partners’ $4.6 billion acquisition of KnowBe4, Inc. The decision is notable for its treatment of two key issues: (1) the standard for pleading the existence of a stockholder control group, and (2) the cleansing effect of an informed, uncoerced stockholder vote under Corwin v. KKR Financial Holdings LLC where entire fairness would otherwise apply due to director-level conflicts. 125 A.3d 304 (Del. 2015). The opinion reinforces the importance of robust procedural protections — including a fully empowered special committee and a majority-of-the-minority vote — in similar M&A transactions involving director-level conflicts.

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