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Business Organizations Keyed to Sjostrom
KT4 Partners LLC v. Palantir Technologies Inc.
Citation:
203 A.3d 738 (Del. 2019)Facts
On September 20, 2016, KT4 sent a written demand to Palantir requesting to inspect its books and records. The demand’s stated purpose was to investigate fraud, mismanagement, abuse and breach of fiduciary duty committed by Palantir, its officers, directors, agents, and majority shareholders relating to the following issues: interference with KT4’s effots to sell its Palantir shares; Palantir’s practice of improperly favoring certain stockholders; corporate waste; Palantir’s actions that deprived certain investors of the full value of their investments and securities fraud. The demand requested general access to the books and records of the corporation and other requests, ranging from general information like financial statements to more specific information such as books and records related to the September 2016 amendments and Palantir’s potential breach of the first refusal agreement.
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Shareholders’ Rights