Delaware Supreme Court Holds That Stockholders Need Ordinarily Only Identify a 'Credible Basis' for Possible Wrongdoing, Not 'Actionable Misconduct,' to Establish a 'Proper Purpose' for a Section 220 Books and Records Demand | Kramer Levin Naftalis & Frankel LLP
To embed, copy and paste the code into your website or blog: Last week, the Delaware Supreme Court issued an important decision effectively broadening the scope of stockholder pre-litigation inspection rights. In January 2020, the Court of Chancery held in Lebanon County Employees’ Retirement Fund v. AmerisourceBergen Corp. that demanding stockholders had established a proper purpose under Section 220 of the Delaware GCL to inspect AmerisourceBergen’s books and records and ordered, sua sponte, a 30(b)(6) deposition to enable the plaintiffs to identify the types and custodians of documen...
Source: jdsupra.com