In re Cysive, Inc. Shareholders Litigation

In In re Cysive, Inc. Shareholders Litigation (Del. Ch. 2003) 836 A.2d 531, the court concluded that Carbonell controlled the corporation, even though he owned only 35 percent of the corporation's stock. He was the largest shareholder and exercised control through involvement in management and his status as Cysive's founder and "inspirational force." (Id. at p. 552.) The Cysive court concluded that although it did not need to find that "Lund a subordinate of Carbonell's or Carbonell's relatives are merely servile tools of Carbonell, the natural inference from the record is that they are close allies of his who have benefited in material ways from his managerial control of Cysive. At this stage of their relationship, Lund and Carbonell's familial subordinates can safely be considered part of a unified voting coalition." (Id. at p. 552.)