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: Delaware Business Litigation ReportCourt Of Chancery Limits Books And Records In Derivative Litiagtion
By Edward M. McNally
King v. Verifone Holdings Inc. , C.A. 5047-VCS (May 12, 2010)
This is another important decision in the Court of Chancery's continuing effort to curb what it sees as abuses in derivative litigation. Here the Court ruled that a plaintiff may not file a books and records case to obtain discovery after it filled a derivaive suit. Rather, the books and records case must be filed before the derivative suit is filed.
The Court also indicated that it may not select as lead counsel the attorney for the party who files first, as it has often done in the past. This shows the Court is focusing on the merits of a complaint more than the speed with which it is filed.
Full post as published by Delaware Business Litigation Report on May 12, 2010 (boomark / email).
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