A senior employee left for a rival – now his old company is fighting over who funds the fallout
A Delaware court has refused to let Toku walk away from a former Head of Legal's fight to make the company cover his legal bills.
Benjamin Snipes ran the legal function at WorkCo, Inc., which does business as Toku, from June 2023 to July 12, 2024. He then left to become General Counsel at competitor LiquiFi, Inc. Five months later, Toku sued both of them in the Delaware Court of Chancery, alleging Snipes had walked out with confidential and privileged information. The complaint accused him of breaching Confidentiality and Non-Disclosure Agreements, violating the Delaware Uniform Trade Secrets Act, and breaching fiduciary duties as a senior Toku employee. Tortious interference and deceptive trade practices claims followed.
In December 2025, Snipes asked Toku to advance his mounting legal fees under bylaws that promise to cover directors and officers in covered proceedings. When Toku did not pay, he filed his own action in January 2026 to force the issue.
Toku tried to outmaneuver him. It offered to dismiss its claims without prejudice in late January. By February 13, it had settled with LiquiFi, which agreed to cover Snipes' fees through February 5. On March 24, Vice Chancellor Laster dismissed Toku's claims against Snipes, but with conditions. Toku cannot refile unless Snipes sues it first, or it uncovers new evidence that Snipes actually used its confidential information or...
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