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Summaries and analysis of recent Delaware court decisions concerning business-related litigation.

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Court Of Chancery Explains Basis For Inspection Of Alleged Wrongdoing

Silverberg v. ATC Healthcare Inc., C.A. 2017-0242-JRS (December 5, 2017)

While the standard to win the right to inspect corporate records to investigate alleged wrongdoing is a lenient one, it is still not enough to just allege something was done improperly. As this decision shows, you still need to prove some factual basis for the inspection. Just showing the contract with an insider was amended does not get you the right to inspect.