In Re Spree.Com Corp.

2001 WL 1518242 (E.D.Pa. 2001)

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Nature of the Case

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Facts

Cashback Liquidation Company (P) sued a venture capital fund called TCV partners along with the corporate general partner of TCV limited partnership and some of the investors in TCV and Mark Tesler. P contends Ds made certain damaging comments to a reporter from the Wall Street Journal about P’s business without consent and in violation of the duties of confidentiality, loyalty, and due care imposed on them as a board member and as investors in the company. D’s basically discussed the financial health of the startup company in which they had placed $5 million and how the company, Spree.com, needed more money and that TCV would support them until some key sales milestones are reached. There was a confidentiality clause in the investment agreement. The statements were innocuous with terms such as “puppy” and “road show” and the need for additional money coming up and the solicitations for it. P claims that Ds revealed confidential information that was printed in an article in the Wall Street Journal. Ps sued contending a breach of contract and a violation of fiduciary duty in their venture capital limited partnership agreement. This was a motion to dismiss the claims. The trial judge dismissed a number of allegations but ordered D to answer the complaint for tortious interference with prospective contract claims.