Background
Elias Guerra, acting as Securityholder Representative, and Popwallet, Inc. sued Snap Inc. in the Delaware Court of Chancery.
Magistrate Wright issued a May 1, 2026 report granting Snap’s motion to dismiss. The plaintiffs filed exceptions to that report.
The Court’s Holding
Chancellor Kathaleen St. Jude McCormick reviewed the magistrate’s report de novo, as required when exceptions are taken to a magistrate’s report.
The Chancellor found no fault with the magistrate’s conclusions, overruled the plaintiffs’ exceptions, and adopted the report in full as an order of the court. The result was dismissal pursuant to the magistrate’s recommendation.
Key Takeaways
- The Court of Chancery conducts de novo review of exceptions to a magistrate’s report.
- The plaintiffs’ exceptions were overruled.
- The magistrate’s report granting Snap’s motion to dismiss became an order of the court.
Why It Matters
The decision leaves the magistrate’s dismissal ruling intact and illustrates that exceptions will not succeed where de novo review reveals no error in the magistrate’s analysis.