Sorrento Therapeutics Inc. v. Anthony Mack

CourtCourt of Chancery of Delaware
DecidedApril 2, 2026
DocketC.A. No. 2021-0210-PAF
StatusPublished

This text of Sorrento Therapeutics Inc. v. Anthony Mack (Sorrento Therapeutics Inc. v. Anthony Mack) 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
Sorrento Therapeutics Inc. v. Anthony Mack, (Del. Ct. App. 2026).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

SORRENTO THERAPEUTICS, ) INC., a Delaware corporation, and ) SCILEX PHARMACEUTICALS ) INC., a Delaware corporation, ) ) Plaintiffs, ) ) v. ) C.A. No. 2021-0210-PAF ) ANTHONY MACK, ) ) Defendant. )

ORDER ADDRESSING APPLICATION FOR ATTORNEYS’ FEES AND EXPENSES

WHEREAS:

A. On March 12, 2021, plaintiffs Sorrento Therapeutics, Inc. (“Sorrento”)

and Scilex Pharmaceuticals, Inc. (“Scilex,” and with Sorrento, “Plaintiffs”) filed

their original complaint in this action against defendants Anthony Mack and Virpax

Pharmaceuticals, Inc. (“Virpax,” and with Mack, “Defendants”).

B. Plaintiffs later filed amended complaints. The operative complaint

asserted claims against Mack for breach of an employment agreement and a

restrictive covenants agreement, breach of fiduciary duty, and misappropriation of

trade secrets, and against Virpax for tortious interference, aiding and abetting

Mack’s breaches of fiduciary duty, and misappropriation of trade secrets. C. On September 1, 2023, the court issued a post-trial opinion on liability

(the “Liability Opinion”). The Liability Opinion reflected a mixed result for the

parties. The Liability Opinion found that Mack had breached the restrictive

covenants agreement and that Virpax had tortiously interfered with that agreement.

The court also found that Mack had breached his fiduciary duties by diverting certain

corporate opportunities to his other enterprises, including Virpax, and that he had

improperly used Scilex employees, funds, and data to develop those opportunities.

The court concluded that Virpax had aided and abetted Mack’s breaches of fiduciary

duty.

D. Plaintiffs obtained a much more modest victory on their claims for

misappropriation of trade secrets. Despite Plaintiffs’ contention that Defendants

misappropriated trade secret information contained in more than a thousand

documents, the court found that Plaintiffs met their burden of proof as to information

contained in only five of those documents.

E. After the court issued the Liability Opinion, Plaintiffs and Virpax

entered into a settlement agreement, leaving Mack as the lone defendant. On

July 31, 2025, the court issued an opinion determining the appropriate remedy (the

“Remedy Opinion”). The Remedy Opinion concluded that Mack was not liable for

damages for breach of the restrictive covenants agreement or misappropriation of

trade secrets. The court extended the duration of the restrictive covenants agreement

2 and permanently enjoined Mack from using or disclosing any of the trade secret

information that he had misappropriated. The Remedy Opinion found that Plaintiffs

had proved damages of $540,576 for Mack’s breaches of his duty of loyalty, but

because of the settlement agreement between Plaintiffs and Virpax, that amount was

reduced to zero.

F. The court also determined that Mack had “engaged in intentional

misconduct in clear violation of his duty of loyalty.” Remedy Op. at 47. The

Remedy Opinion also found Mack’s conduct to be “willful and malicious” and that

he had engaged in litigation misconduct, all of which warranted fee shifting. Id.

Mindful that Plaintiffs were only partially successful on their claims, the court, in

the exercise of its discretion, awarded Plaintiffs one-third of their reasonable

attorneys’ fees and expenses in pursuing this litigation, to be paid by Mack. Id. at

49.

G. Plaintiffs and Mack were unable to reach agreement on the amount of

attorneys’ fees to be awarded to Plaintiffs. Plaintiffs have documented a total of

$16,134,946.06 in attorneys’ fees and expenses, for which they seek one-third, or

$5,378,315.35.1 Mack challenges that amount as unreasonable.2 Mack argues that

1 Ma Aff. ¶ 7. 2 Mack’s Opposition Br. ¶ 6.

3 Plaintiffs’ reasonable fees in this case are no more than $7,251,521.78, leaving Mack

responsible for no more than $2,417,173.93.3

NOW, THEREFORE, the court having carefully considered Plaintiffs’

application for attorneys’ fees and expenses and Mack’s opposition thereto, IT IS

HEREBY ORDERED, this 2nd day of April, 2026, as follows:

1. “Delaware law dictates that, in fee shifting cases, a judge [must]

determine whether the fees requested are reasonable.” Mahani v. Edix Media Grp.,

Inc., 935 A.2d 242, 245 (Del. 2007). The court has broad discretion in making this

determination. Black v. Staffieri, 2014 WL 814122, at *4 (Del. Feb. 27, 2014)

(TABLE) (citing Kaung v. Cole Nat’l Corp., 884 A.2d 500, 506 (Del. 2005)). To

assess a fee’s reasonableness, the court considers the factors set forth in the Delaware

Lawyers’ Rules of Professional Conduct. See Mahani, 935 A.2d at 245–46. The

relevant factors are as follows:

(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;

(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;

(3) the fee customarily charged in the locality for similar legal services;

(4) the amount involved and the results obtained;

3 Mack’s Opposition Br. 15.

4 (5) the time limitations imposed by the client or by the circumstances;

(6) the nature and length of the professional relationship with the client;

(7) the experience, reputation, and ability of the lawyer or lawyers performing the services;

(8) whether the fee is fixed or contingent.

Del. Lawyers’ R. Prof’l Conduct 1.5(a).

2. “Determining reasonableness does not require that this Court examine

individually each time entry and disbursement.” Aveta Inc. v. Bengoa, 2010

WL 3221823, at *6 (Del. Ch. Aug. 13, 2010). “Just because the court will not review

each line item individually[, however,] . . . does not mean that the party seeking

[attorneys’ fees] can play fast and loose . . . . [C]ounsel must make a good faith

determination regarding the fees and expenses to which its clients are entitled.” Weil

v. VEREIT Operating P’ship, L.P., 2018 WL 834428, at *12 (Del. Ch. Feb. 13,

2018). Delaware courts, however, generally eschew second-guessing an attorney’s

judgment as to whether work was necessary or appropriate. Arbitrium (Cayman Is.)

Handels AG v. Johnston, 1998 WL 155550, at *4 (Del. Ch. Mar. 30, 1998), aff’d,

720 A.2d 542 (Del. 1998). Such hindsight review “is hazardous and should[,]

whenever possible[,] be avoided.” Id.; accord Lynch v. Gonzalez, 2020

WL 5587716, at *2 (Del. Ch. Sept. 18, 2020), aff’d, 253 A.3d 556 (Del. 2021). One

indication of reasonableness is a party’s agreement to an hourly fee arrangement that

commits the client to pay fees incurred regardless of the outcome of the litigation.

5 See State Wis. Inv. Bd. v. Bartlett, 2002 WL 568417, at *6 (Del. Ch. Apr. 9, 2002)

(“[A]n arm’s length agreement, particularly with a sophisticated client, as in this

instance, can provide an initial ‘rough cut’ of a commercially reasonable fee.”), aff’d,

808 A.2d 1205 (Del.

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Related

Mahani v. Edix Media Group, Inc.
935 A.2d 242 (Supreme Court of Delaware, 2007)
Kaung v. Cole National Corp.
884 A.2d 500 (Supreme Court of Delaware, 2005)
Johnston v. Arbitrium (Cayman Islands) Handels AG
720 A.2d 542 (Supreme Court of Delaware, 1998)
Cohen v. Cohen
269 A.2d 205 (Supreme Court of Delaware, 1970)
May v. Bigmar, Inc.
838 A.2d 285 (Court of Chancery of Delaware, 2003)
Danenberg v. Fitracks, Inc.
58 A.3d 991 (Court of Chancery of Delaware, 2012)

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