
Originally Posted by
Deunan
This is nothing more than ignorant speculation. The case cited revolves around an NDA. The complaint, like all complaints is one-sided. The information that the shareholder was requesting could contain what's referred to as trade secret information. There is nothing unreasonable about a company requiring third parties to enter into their own NDA as part of the due diligence process and the language is protective of the company's right to control the process and protect its rights. It may seem like overkill to laymen but this is what multinational law firms like Orrick do in advising their clients and drafting their NDA's.
The shareholder, Jon Van Canaghem, was a founder and an executive officer and member of the board of directors of Trion Worlds until late 2009, less than a year before he was asked to sign the NDA to access insider information on the company. It's highly unlikely that he wasn't perfectly aware of the relative financial condition of the corporation as he would have had access to all of the corporation's financial information at that time including financial projections out to 1-2 quarters. This case revolved around Van Canaghem's right to disclose confidential information to third parties without them having to sign an NDA with Trion Worlds (which is a ludicrous notion), and Trion's right to refuse to enter into an NDA with what it might deem was a third party affiliated with a competitor.
There is nothing in the complaint about the corporation seeking additional financing because it didn't need additional financing in 2010 as it had secured $70M in a Series C Preferred Stock offering in 2008 and didn't do another equity financing round until 2012.
The TOS includes a provision that allows Trion to unilaterally amend it. This is typical of all TOS for consumer service and product providers as most are contracts of adhesion. It doesn't mean everything in the TOS is enforceable as courts will nullify or modify terms in contracts of adhesion that they find unconscionable but it does mean that everyone in this thread is tilting at windmills.