Two former Groq engineers filed a lawsuit against Nvidia at the Court of Chancery of Delaware, accusing the $5 trillion company of undervaluing stockholders in a $20 billion asset acquisition deal. The agreement breaks down into $17 billion for a non-exclusive software license and $3 billion in restricted stock units for transferred employees. Groq’s board is accused of approving the deal without the stockholder vote required by Delaware law and without any process designed to maximize the value of what Nvidia purchased. Approximately 150 to 200 Groq engineers joined Nvidia as part of the deal, including founder Jonathan Ross and president Sunny Madra. Groq stated the lawsuit was meritless and it would vigorously defend itself.
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