Delaware Business Litigation Report

Court Of Chancery Explains Proper Purpose Analysis

KT4 Partners LLC v. Palantir Technologies Inc., C.A. 2017-0177-JRS (February 22, 2018)

When a demand to inspect corporate records states a purpose other than to value the corporation’s stock, it is often difficult to determine if the basis for the demand is properly supported by the facts in the petition. The petition must state a credible basis to investigate any alleged wrongdoing. This decision is an excellent summary of what facts are sufficient to support such a demand and the analysis the Court will use to decide that issue.

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