Shant Hamassian v. Cineverse Corp.

── Shant Hamassian v. Cineverse Corp. ── Court: Court of Chancery of Delaware Date: April 14, 2026 Category: General COURT OF CHANCERY OF THE STATE OF DELAWARE CHRISTIAN DOUGLAS WRIGHT LEONARD L. WILLIAMS JUSTICE CENTER MAGISTRATE IN CHANCERY 500 NORTH KING STREET, SUITE 11400 WILMINGTON, DE 19801-3734 Date Submitted: February 17, 2026 Date Decided: April 14, 2026 Shant Hamassian Matthew W. Murphy, Esquire 24033 Park Granada Benjamin O. Allen, Esquire Calabasas, CA 91302 Richards, Layton & Finger, P.A. 820 N. King Street Wilmington, DE 19801 Re: Shant Hamassian v. Cineverse Corp., C.A. No. 2025-1437-CDW Dear Litigant and Counsel: Plaintiff Shant Hamassian demands inspection of certain books and records of defendant Cineverse Corp. under Section 220 of the Delaware General Corporation Law. Cineverse objects on several grounds, including that Hamassian has failed to state a proper purpose for his inspection. After carefully considering the evidence and arguments the parties presented, I agree with Cineverse that Hamassian has failed to prove he has a proper purpose for his inspection. Specifically, I find by a preponderance of the evidence that Hamassian’s purpose for inspection is to advance his personal interests under contracts with Cineverse, not his interests as a Cineverse stockholder. I recommend that Hamassian’s inspection demands be denied. C.A. No. 2025-1437-CDW April 14, 2026 Page 2 of 14 I. BACKGROUND The parties consented to trial on a paper record without argument, so these are the facts as I find them based on the complaint,1 the answer,2 the parties’ pretrial briefs,3 and exhibits attached to the pleadings and briefs. A. The Parties Hamassian is a filmmaker and the director of two films: A Really Nice Guy and Night of the Slasher.4 In 2020, Hamassian entered into two distribution agreements for his films with Bloody Disgusting, LLC (“BD”), a privately held company in the business of streaming digital media.5 Cineverse is a publicly traded Delaware corporation in that is also engaged in the business of streaming digital media.6 Cineverse acquired BD in October 2021 and, with it, BD’s rights and obligations under the distribution agreements.7 1 Dkt. 1 (“Compl.”). 2 Dkt. 33 (“Ans.”). 3 Pl.’s Opening Pre-Trial Br., Dkt. 36 (“Opening Br.”); Def.’s Answering Pre-Trial Br., Dkt. 37 (“Answering Br.”); Pl.’s Reply Pre-Trial Br., Dkt. 39 (“Reply Br.”). 4 Compl. Ex. D-3; Answering Br. 8; see Answering Br. Exs. A–B. 5 Answering Br. 7; see Answering Br. Ex. A (first distribution agreement), Ex. B (second distribution agreement). 6 Ans. ¶ 7; Answering Br. 7. 7 Answering Br. 7. -2- C.A. No. 2025-1437-CDW April 14, 2026 Page 3 of 14 B. BD Agrees to Distribute Hamassian’s Films On October 13, 2020, Hamassian and BD executed the first distribution agreement.8 The first agreement granted BD the right to distribute and sublicense A Really Nice Guy.9 On December 6, Hamassian and BD executed the second distribution agreement (together, “Distribution Agreements”).10 Under the Distribution Agreements, BD would pay Hamassian a percentage of the proceeds generated from his films and would provide Hamassian quarterly accountings.11 C. Cineverse Acquires BD and Hamassian’s Royalties Are Lost in the Transition In October 2021, Cineverse acquired BD.12 What followed was a 20-month transition period as Cineverse integrated BD into its business.13 The transition implemented new operating proced