The Delaware Court of Chancery, in Michael J. Donnelly v. Keryx Biopharmaceuticals, Inc., C.A. No. 2018-0892-SG, memo. op. (Del. Ch. Oct. 24, 2019), granted inspection of books and records, finding plaintiff established a credible basis to suspect wrongdoing and no evidence that plaintiff’s purpose for inspection was pretextual, adding that inspection related to disclosures is necessary to investigate possible breach of fiduciary duty under Corwin.
NEW: K&L Gates discusses the decision in Delaware Court of Chancery Grants Stockholder’s Section 220 Demand for Books and Records.
White and Williams discusses the decision in Delaware Stockholders Need Only Present Reasonable Inference of Managerial Wrongdoing for Inspection of Company’s Records.
Shearman & Sterling discusses the decision in M&A Watch: Seeking Your True Purpose? Delaware Offers Guidance on Section 220 Requests.