Frank Cianciulli v. Webinar.Net, Incorporated

CourtCourt of Chancery of Delaware
DecidedOctober 6, 2025
Docket2025-0781-DG
StatusPublished

This text of Frank Cianciulli v. Webinar.Net, Incorporated (Frank Cianciulli v. Webinar.Net, Incorporated) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frank Cianciulli v. Webinar.Net, Incorporated, (Del. Ct. App. 2025).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

FRANK CIANCIULLI, ) ) Plaintiff, ) ) v. ) C.A. No. 2025-0781-DG ) WEBINAR.NET, INCORPORATED, ) a Delaware corporation, ) ) Defendant. )

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT1

WHEREAS:

A. Plaintiff Frank Cianciulli is a director of Defendant Webinar.Net,

Incorporated (“Webinar”), a position he has held since his appointment in

2022.2 Webinar is a Delaware corporation with its principal place of business

in Pleasanton, California.3

1 In this report, citations to Plaintiff’s exhibits appear as “PX”; citations to Defendant’s exhibits appear as “DX.” Citations to the transcript of the oral argument, held on September 25, 2025, appear as “Tr.” The Court cites to the draft transcript in the interest of resolving this action expeditiously and will amend this report when the official transcript is available. 2 Pl.’s Compl. (“Compl.”) ¶¶ 1–2, 5, 13, 24–31, 44, Docket Item (“D.I.”) 1; Def.’s Ans. (“Ans.”) ¶¶ 1–2, 5, 13, 24–31, 44, D.I. 9 (admitting Plaintiff is a director of Webinar). See also Tr. 19:08–19:10 (defense counsel admitting this arises from Plaintiff’s board seat), 24:11–24:15 (stating that Plaintiff obtained a board seat). 3 Compl. ¶ 14; Ans. ¶ 14. B. Plaintiff was appointed to the Webinar board by Wish

Collaboration, Inc. (“Wish”).4 Plaintiff is the founder, CEO and majority

owner of Wish.5

C. On April 4, 2023, Webinar filed a lawsuit against Plaintiff, Wish

and two other defendants (“Underlying Action”).6 In the Underlying Action,

Webinar asserted six counts against Plaintiff, including four alleging breaches

of fiduciary duty in Plaintiff’s role as a director of Webinar.7

D. It is undisputed that Webinar’s bylaws contain a mandatory

advancement provision.8 Section 44(c), in relevant part, states:

The corporation [Webinar] shall advance to any person who was or is a party or is threatened to be made a party to any threatened, pending or

4 See Compl. ¶ 24; Ans. ¶ 24. 5 Compl. ¶ 13; Ans. ¶ 13. Plaintiff and Wish are represented by the same counsel. See Entry of Appearance, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. Apr. 4, 2023), D.I. 24. 6 Compl. ¶ 6; Ans. ¶ 6. See also Pl.’s Compl., Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. Apr. 4, 2023) (“Orig. Compl.”). The Court may take judicial notice of filings in the Underlying Action. D.R.E. 202(d)(1)(C). The initial complaint has been amended twice, as described in this Order. 7 Orig. Compl. ¶¶ 65, 76–103. The complaint included four counts asserted against Wish and two counts asserted against both Plaintiff and Wish. Id. ¶¶ 67–70, 71–74, 91–114. 8 Tr. 29:14–29:23. See also Pl.’s Op. Br. in Supp. of Pl.’s Mot. for Summ. J. (“OB”) at 1–9 (recounting the factual background), D.I. 10; Def.’s Ans. Br. in Opp. to Pl.’s Mot. for Summ. J. (“AB”) at 1, D.I. 16 (“To the extent Plaintiff sets forth facts in his statement of facts in support of summary judgment, they are accurate – albeit presented with legal conclusions and in an argumentative fashion.”).

–2– completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was a director or executive officer, of the corporation, or is or was serving at the request of the corporation as a director or executive officer of another corporation, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request therefor, all expenses incurred by any director or executive officer in connection with such proceeding[.]9

E. On April 11, 2024, Plaintiff made a demand for advancement

under the bylaws and submitted an undertaking to repay non-indemnifiable

fees and expenses.10 Webinar did not respond to the demand for more than

one year.11 During this period, the parties engaged in settlement discussions12

and mediation,13 and Webinar filed its first amended complaint (“FAC”).14

9 PX 2 (“Bylaws”) § 44(c), D.I. 10 (emphasis added). Webinar admits that PX 2 is a true and correct copy of its bylaws. Ans. ¶ 20. 10 Compl. ¶ 33; Ans. ¶ 33. Section 44(c) requires an undertaking to repay. Bylaws § 44(c). 11 Compl. ¶¶ 36–39; Ans. ¶¶ 36–39. 12 Compl. ¶ 35; Ans. ¶ 35. 13 Compl. ¶ 6; Ans. ¶ 6. 14 FAC, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. Jan. 25, 2025). The FAC asserted seven counts against Plaintiff, including four alleging breaches of fiduciary duty in his role as a director of Webinar. Id. ¶¶ 149–51, 153–55, 168–72, 179–86. The FAC also includes three counts against Wish and four counts asserted against both Plaintiff and Wish. See id. ¶¶ 141–47, 134–40, 158–65, 179–93, 204–15.

–3– F. On April 14, 2025, Webinar rejected the demand in its entirety.15

Webinar argued that Plaintiff failed to meet the standard of conduct required

for indemnification16 and that Plaintiff “was not serving at the request of

[Webinar] when he” engaged in the conduct outlined in Webinar’s

“forthcoming Second Amended Complaint.”17 Webinar asserted that any

decision to advance Plaintiff’s fees and expenses would be discretionary.18

G. On May 14, Webinar filed its second amended, and operative,

complaint (“SAC”).19 The SAC includes five counts against Plaintiff,

including three alleging breaches of fiduciary duty in Plaintiff’s role as a

15 Compl. ¶¶ 39, 41; Ans. ¶¶ 39, 41; OB, PX 13 But see FAC ¶¶ 150–51, 153–55, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. Jan. 25, 2024) (seeking to remove Plaintiff from Webinar’s board, but not explicitly seeking to deny him indemnification). 16 OB, PX 13 at 2 (“Webinar is also seeking a declaratory judgment that Cianciulli is not entitled to indemnification[.]” (emphasis added)). 17 Id. Id.; Compl. ¶ 41; Ans. ¶ 41. Webinar’s bylaws also contain provisions relating to 18

mandatory and permissive indemnification. Bylaws § 44(a), (b). 19 SAC, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. May 14, 2025).

–4– director of Webinar.20 Plaintiff moved to dismiss the SAC nine days later,

and briefing on the motion is underway.21

H. On July 7, Plaintiff filed this advancement action.22 Webinar

filed an answer on July 28.23 In its answer, Webinar conceded that Plaintiff

satisfied all the prerequisites for advancement under its bylaws,24 including

that Plaintiff was, in part, sued by reason of his status as a director.25

I. On August 1, Plaintiff filed a Motion for Summary Judgment

(“MSJ”) on his claim for advancement.26 Webinar opposes the MSJ on two

grounds. First, Webinar argues that the SAC alleges “conduct solely done for

the benefit of Plaintiff and his other company, Wish,” which creates a genuine

20 SAC ¶¶ 139–41, 147–49, 161–65, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. May 14, 2025). The SAC also includes two counts against Wish and one count asserted against both Plaintiff and Wish. Id. ¶¶ 155–60, 166–71, 172–78. 21 Defs.’ Mot. to Dismiss SAC, Webinar.Net, Incorporated v. Frank Cianciulli et al., C.A. 2023-0397-DG (Del. Ch. May 23, 2024); see Order Governing Briefing Sched. on Defs.’ Mot. to Dismiss, C.A. 2023-0397-DG (Del. Ch. July 28, 2025). 22 See Compl., D.I. 1. 23 Ans., D.I. 9. 24 Ans. ¶¶ 13 (Plaintiff is a director), 3 (demand and undertaking submitted), 39 (Wish rejected Plaintiff’s demand). 25 Ans.

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Frank Cianciulli v. Webinar.Net, Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-cianciulli-v-webinarnet-incorporated-delch-2025.