On June 11, 2009, the Delaware Chancery Court ruled that James Cable LLC, a cable company, could not hold the hedge fund Highland Capital and its management company Highland Management (collectively, Highland), liable for the failure of a company Highland owns, Millennium Digital Media Systems LLC, to perform on its contract to purchase the assets of James Cable.  The court reasoned that James Cable failed to state a valid cause of action notwithstanding its allegation that Highland represented that it would be the source of funding for the transaction.  We discuss the factual allegations and the court’s legal analysis.