HSW Secures Major Procedural Victory for Former BuzzFeed Employees, Keeping Their Claims in Arbitration

May 23, 2024

The Delaware Court of Chancery issued an important victory to Harris St. Laurent & Wechsler LLP in the firm’s ongoing action against BuzzFeed, striking down the media company’s second attempt to prevent a group of former employees from arbitrating their claims stemming from its initial public offering. 

Partners Joseph Gallagher, Yonaton Aronoff and Jonathan Harris represent more than 40 former BuzzFeed employees who allege they were wrongfully locked out of selling their shares (causing them to suffer millions of dollars in losses) after the company went public via a SPAC transaction in late 2021. HSW brought the former employees’ claims in arbitration and BuzzFeed Inc. (NASDAQ: BZFD) filed suit in Delaware to stop the arbitration.

This latest gambit by BuzzFeed was its second attempt to force HSW’s clients to sue in Delaware. But in a 59-page decision, the Chancery Court rejected BuzzFeed’s arguments, holding — as HSW had urged — that only an arbitrator can decide where the former employees’ claims should be litigated.

The case is BuzzFeed Inc. et al., v. Hannah Anderson et al., case number 2022-0357, in the Court of Chancery of the State of Delaware. A similar group of former employees are represented by Kevin D. Galbraith and Taylor N. Perretti of The Galbraith Law Firm, and Sean R. O'Brien and A.J. Monaco of O'Brien LLP. Both groups are represented in Delaware by David A. Felice of Bailey & Glasser, LLP.