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Court Of Chancery Dismisses Derivative Complaint for Want Of Factual Support

The Joseph Penar Family Trust v. Adams, C.A. 10441-VCG (April 28, 2016)

This is an interesting decision because it illustrates what many do not understand - a complaint has to have some actual facts to support its claims, not just inferences.  Thus, when a plaintiff fails to use his rights to inspect an entity’s records to get out the facts, his general allegations of wrongdoing will not be enough to sustain a complaint.



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